ABU DHABI (The Thursday Times) — First Abu Dhabi Bank, the UAE’s largest lender, plans to raise up to Dh15 billion ($4.08 billion) through a rights issue, offering existing shareholders new shares at a 30% discount to fund its next phase of growth.
The bank’s board has approved the issue of 1,109,467,456 new shares at Dh13.52 each, 30% below FAB’s closing price on the Abu Dhabi Securities Exchange on November 10, the bank said in a statement on Wednesday. Shareholders will be able to subscribe in proportion to their current holdings, keeping their stakes intact.
Mubadala Investment Company, the Abu Dhabi state investor that is FAB’s largest shareholder with about 37.9%, intends to take up its full entitlement.
Shareholders will vote on the proposal at a general assembly on December 7, subject to regulatory approvals. The final entitlement ratio, rights-trading period, and subscription timetable will be announced later, and the deal is expected to complete in the first quarter of 2027.
Capital for growth abroad
FAB said the money would give it more room to lend at home and across its international network, which covers more than 20 markets and 25 trade corridors linked to the UAE, and to keep investing in technology and artificial intelligence.
“FAB is at the centre of this growth, enabling strategic investment across the UAE and internationally,” said Sheikh Tahnoon bin Zayed Al Nahyan, the bank’s chairman. “The proposed Rights Issue will further strengthen FAB’s ability to support the UAE’s ambitions and capture the opportunities ahead.”
Hana Al Rostamani, the group chief executive, called the raise “a strategic step that will accelerate our next phase of growth”.
Targets to 2031
The bank says its total assets have grown by more than 50% since 2020 to Dh1.4 trillion and its net income has doubled to Dh21.1 billion. It paid Dh44 billion in cash dividends between 2020 and 2025.
For 2026 to 2031, it is targeting annual loan and revenue growth of 10% to 15%, a return on tangible equity above 17%, and more than Dh50 billion in cumulative dividends, while keeping its core capital ratio above 14% before dividends.
