First Abu Dhabi Bank (FAB) has delivered a landmark transaction in transition finance, raising $750 million through the world's first "low-carbon energy" bond issued by a financial institution to fund nuclear energy projects.

This pioneering deal represents a significant evolution in sustainable finance, expanding the scope of eligible transition activities to include reliable, large-scale low-carbon power generation.

Issued under FAB's 2023 Sustainable Finance Framework, the five-year bond supports nuclear energy projects spanning new plant construction, upgrades to existing facilities, and the development of next-generation reactor technologies.

Energy generated through these projects is expected to contribute around 25% of the UAE’s annual electricity demand, supporting the country’s Net Zero 2050 ambitions by helping avoid more than one million tonnes of carbon dioxide equivalent emissions annually.

By explicitly recognising nuclear as a transition-enabling solution, FAB has introduced an innovative approach that balances climate objectives with energy security – an increasingly critical priority in emerging markets.

The transaction was over three times oversubscribed, with more than 90% allocated to non‑Gulf Cooperation Council (GCC) investors and around 50% placed with medium and dark green investors, reflecting strong global demand for credible transition assets.

Building on earlier flagship issuances, including FAB’s private blue bond issuance, this transaction further advances the evolution of sustainable finance toward science-based solutions that deliver real economy emissions reductions at scale.