Abu Dhabi Securities Exchange (ADX) has recently launched the listing of a Dh1.3 billion green sukuk by First Abu Dhabi Bank (FAB), which marks the fifth Green debt instrument on ADX, making it the largest-ever dirham sukuk and the lowest-priced issuance in the dirham market by a UAE financial institution.

FAB, as the UAE’s largest bank and one of the world’s largest banking groups with total assets of Dh1.2 trillion, has launched this sukuk to support the UAE’s objectives in driving a green, diversified, and resilient economy.

Abdulla Salem Alnuaimi, chief executive officer of ADX, stated “We’re delighted to announce the listing of FAB’s green sukuk, reaffirming our commitment as a catalyst for green investments and sustainable finance. The growing popularity of our green debt instruments on ADX reflects investors’ keen interest. At ADX, we take pride in offering tailored access to sophisticated choices, aligning with investors’ long-term goals. This move creates opportunities for investors and contributes to the UAE’s economic diversification and sustainability objectives.”

Hana Al Rostamani, group chief executive officer of FAB, also expressed the significance of this milestone, stating “This is an important milestone for both green finance and Islamic finance in the UAE, unlocking new investment opportunities that achieve significant social and sustainability outcomes. FAB is the region’s pioneer bank for sustainable finance, having issued the region’s first-ever green bond in 2017 and now the first dirham-denominated green issuance. Our dirham-denominated green sukuk’s listing on ADX builds on that record, further elevating Abu Dhabi as a center for global finance and a gateway for innovation in capital markets.”

This sukuk listing follows previous green bond listings by Abu Dhabi Future Energy Company (Masdar) and the Abu Dhabi National Energy Company (Taqa). Last year, Sweihan PV Power Company also made a bond listing of $700 million green bonds. The growing presence of green debt instruments in the market indicates a strong interest in sustainable and green finance in the region.