First Abu Dhabi Bank (FAB) has issued and settled AED1 billion ($272.2 million) digitally native green notes, thus becoming the first digital green bond from the Middle East and North Africa region. 

The three-year landmark issuance brings together sustainable finance and digital capital markets infrastructure, reinforcing FAB’s commitment to financial innovation and its role in shaping the future of the region’s capital markets.

The notes were priced on October 13 at an interest rate of 5.75% and settled today through Euroclear’s Digital Financial Market Infrastructure (D-FMI). They will mature today (October 15). 

In line with FAB’s ongoing commitment to sustainable finance, the proceeds from the issuance will support projects with positive environmental or climate-related benefits.

Euroclear’s D-FMI uses distributed ledger technology to facilitate the issuance, distribution and settlement of digitally-native securities. Its connectivity with established secondary market services enables issuers and investors to benefit from digital innovation while maintaining access to familiar market infrastructure.

The transaction also builds on FAB’s track record in digital capital markets and will mark its second digital bond listing on ADX, following its inaugural digital bond issuance in 2025. FAB remains the only issuer with digital bonds listed on ADX.

On the new issuance, Chief Financial Officer Lars Kramer said: "The future of finance must be both sustainable and innovative. With MENA’s first digitally native green bond, FAB is bringing these priorities together and setting a new benchmark for the region’s capital markets. Building on our inaugural digital bond in 2025, we are demonstrating how digital infrastructure can advance sustainable finance through greater automation and more efficient execution."

"This reflects our commitment to developing financing solutions that support the transition to a low-carbon economy and reinforce the UAE’s leadership in financial innovation," he added.