FAB approves proposed Dhs15b rights issue at Dhs13.52 per share

First Abu Dhabi Bank (FAB) announced that its Board of Directors has approved a proposal to raise up to Dhs15 billion through a strategic rights issue, subject to the required shareholder and regulatory approvals.

The proposed issue will provide additional capacity to support FAB’s next phase of growth in the UAE and across its international network, while maintaining the capital strength, liquidity and financial flexibility underpinning its medium-term ambitions.

Since 2020, FAB’s total assets have increased by more than 50 per cent to Dhs1.4 trillion, while net income has doubled to Dhs21.1 billion. Return on tangible equity (RoTE) has risen by 6.2 percentage points to 19.2 per cent.

Between 2020 and 2025, the bank distributed Dhs44 billion in cash dividends to shareholders, representing nearly 20 per cent of all cash dividends on the Abu Dhabi Securities Exchange (ADX), while maintaining its AA- credit strength.

Over the same period, FAB expanded its international presence, becoming the first bank from the Middle East and Africa to establish a global banking franchise.

The Group now operates across more than 20 markets, connecting clients through 25 UAE-linked trade corridors.

The proposed rights issue aims to strengthen FAB’s ability to capitalise on growth opportunities in the UAE and internationally, deepen client relationships and support continued investment in strategic capabilities, including technology and artificial intelligence (AI).

Under its medium-term framework for 2026-2031, FAB is targeting annual loan and revenue growth of 10-15 per cent, RoTE above 17 per cent throughout the economic cycle, compared with previous guidance of above 16 per cent, and cumulative dividends exceeding DhsD50 billion.

These targets are supported by disciplined risk and capital management, with the cost of risk maintained below 70 basis points, Group CET1 (pre-dividend) above 14 per cent, continued AA- credit strength and diversified liquidity and funding sources.

FAB’s growth outlook is supported by expanding global trade, cross-border capital flows and investments in critical infrastructure, AI and digital capabilities. Combined with expected real GDP growth of around 5 per cent over 2026-2031, these trends are creating opportunities across financing, investment, trade, wealth and technology.

Sheikh Tahnoon Bin Zayed Al Nahyan, Chairman of FAB, said, “The UAE continues to advance an ambitious long-term economic agenda, underpinned by diversification, investment, innovation and a growing role in global trade and capital flows.” He added that FAB plays a central role in supporting strategic investments within the UAE and internationally, noting that the proposed rights issue would further strengthen the bank’s ability to support the country’s ambitions and capture future opportunities.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said, “We have built a leading and diversified global banking franchise with a strong track record of growth, profitability and shareholder returns.” She described the proposed Dhs15 billion rights issue as a strategic step towards accelerating FAB’s growth across the UAE and its international network, while strengthening its position as a leading global banking franchise.

Al Rostamani emphasised that the bank would deploy capital with discipline, focusing on opportunities that enhance its competitive position, expand its international reach and deliver sustainable returns to shareholders.

The proposed rights issue is expected to generate Dhs15 billion in gross proceeds through the issuance of 1,109,467,456 new shares. Eligible shareholders will be able to subscribe on a pro-rata basis, allowing them to maintain their proportional ownership in FAB.

The new shares will be offered at Dhs13.52 each, representing a 30 per cent discount to FAB’s closing share price on ADX on 10th November, 2026. The final entitlement ratio, eligibility date, rights-trading period and subscription timetable will be announced later.

Mubadala Investment Company, FAB’s largest shareholder, intends to subscribe for its full pro-rata entitlement, reflecting its continued confidence in the bank’s strategy and long-term growth prospects.

FAB will seek shareholder approval for the proposed rights issue at a General Assembly meeting scheduled for 7th December, 2026, subject to the required regulatory approvals.

Following these approvals, the bank will announce the final terms and timetable, including the ex-rights date and subscription period. The transaction is expected to be completed in the first quarter of 2027.

Further information will be available through FAB’s Investor Relations website. FAB will act as Lead Manager, Bookrunner and Sole Receiving Bank for the issue, with J.P. Morgan serving as financial adviser and Allen Overy Shearman Sterling as the bank’s legal adviser.

WAM