<a href="https://www.thenationalnews.com/business/markets/2023/03/01/fab-shareholders-approve-156bn-dividend-for-2022/" target="_blank">First Abu Dhabi Bank</a>, the <a href="https://www.thenationalnews.com/tags/uae/">Emirates’</a> largest lender by assets, has issued the UAE's first ever dirham-denominated green sukuk, as green issuances take off across the region. The Dh1.3 billion ($353.93 million) Sharia-compliant instrument also marked FAB’s first dirham-denominated public issuance, it said in a statement on Thursday. The three-year green sukuk was priced on Wednesday at 4.93 per cent. The offering is the largest ever dirham sukuk and has the lowest ever pricing achieved by the financial institution in the dirham market, FAB said. The issuance “showcases the potential of both green and Islamic finance and strongly connects to the UAE’s climate objectives, especially in a year when the country will host Cop28", the bank said. FAB also acted as joint lead manager and green structuring agent on the sukuk issuance. “FAB’s inaugural green sukuk, and the UAE’s first AED-denominated green issuance, represent a landmark achievement for both the green finance and Islamic finance sectors in the UAE, as well as for local bonds,” said Hana Al Rostamani, group chief executive of FAB. “As a leading force for investment banking, FAB fully supports the establishment of a thriving dirham bond market, serving to elevate Abu Dhabi’s increasing role as a centre for global finance.” The market for green and sustainable bonds as well as sukuk is booming. Companies across the Gulf region are looking to green financing to support their growth ambitions as governments in the oil-rich economic bloc push to meet their net-zero commitments. In May, <a href="https://www.thenationalnews.com/business/economy/2022/08/24/majid-al-futtaims-first-half-earnings-jump-18-on-revenue-boost/">Majid Al Futtaim Holding</a>, one of Dubai's biggest private sector companies and the Middle East's largest mall operator, announced $500 million had been raised through a <a href="https://www.thenationalnews.com/business/property/2023/05/18/aldar-investment-properties-raises-500m-from-debut-green-sukuk/">green sukuk</a>. In the same month, Aldar Investment Properties, the real estate management unit of the emirate’s largest listed developer, <a href="https://www.thenationalnews.com/business/property/2022/12/14/aldar-and-mubadala-buy-abu-dhabi-commercial-tower-in-1225m-deal/">Aldar Properties</a>, raised $500 million through its debut green sukuk to fund acquisitions and meet its <a href="https://www.thenationalnews.com/business/property/2023/01/12/abu-dhabis-aldar-unveils-strategy-to-become-net-zero-company-by-2050/">sustainability goals</a>. On Wednesday, <a href="https://www.thenationalnews.com/business/2023/06/07/masdar-submits-lowest-contract-bid-for-phase-six-of-dubais-mega-solar-park/">Abu Dhabi clean energy company Masdar</a> announced it had raised $750 million through the sale of 10-year senior unsecured notes that will help it fund renewable energy projects. Total Gulf Co-operation Council green and sustainable bond and sukuk issuances last year reached $8.5 billion from 15 deals, compared with $605 million from six deals in 2021, data from Bloomberg’s Capital Markets League Tables showed.