FAB lists first dirham-dominated green sukuk on ADX

The listing marks the fifth green debt instrument on ADX


Somshankar Bandyopadhyay

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FAB and ADX officials at the sukuk-listing ceremony. — Supplied photo
FAB and ADX officials at the sukuk-listing ceremony. — Supplied photo

Published: Wed 22 Nov 2023, 8:28 PM

Abu Dhabi Securities Exchange (ADX) on Thursday launched the listing of an Dh1.3 billion green sukuk by First Abu Dhabi Bank (FAB), notably marking the fifth Green debt instrument on ADX. FAB is the UAE’s largest bank and one of the world’s largest banking groups, with total assets of Dh1.2 trillion .

The largest-ever dirham sukuk and the lowest-ever priced issuance in the dirham market by a UAE financial institution aims to support the UAE’s objectives in driving a green, diversified and resilient economy.

Abdulla Salem Alnuaimi, chief executive officer of ADX, said: “ 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 not only creates opportunities for investors but also contributes to the UAE’s economic diversification and sustainability objectives.”

Hana Al Rostamani, group chief executive officer of FAB, said, “This is an important milestone for both green finance and Islamic finance in the UAE, unlocking new opportunities for investments that achieve important 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 centre for global finance and a gateway for innovation in capital markets.”

Last month, ADX welcomed the listing of a $750 million green bond by Abu Dhabi Future Energy Company (Masdar), following an earlier listing of green bonds valued at $1 billion by the Abu Dhabi National Energy Company (Taqa), and last year, Sweihan PV Power Company made a bond listing of $700 million green bonds.

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