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Abu Dhabi Commercial Bank’s (ADCB) general assembly signed off on a rights issue to raise up to AED 6.1 bn in proceeds, it said in a LinkedIn post, confirming plans flagged earlier last month. The rights issue will boost capital to AED 7.9 bn, up from AED 7.3 bn. The offer, which had previously received the backing of ADCB’s largest shareholder Mubadala, is still pending approvals from the Central Bank of the UAE (CBUAE) and the Securities and Commodities Authority (SCA), after which a prospectus will be published.
Why now? The ADX-listed lender said the move will help support its growth plans and keep its capital levels comfortably above new regulatory buffer requirements for large banks.
ICYMI- ADGM proposed new banking regulations last year, introducing tougher board governance standards, stricter oversight of systemically important banks (D-SIBs), including higher capital buffer requirements,and tighter risk management and capital requirements.
The move will see the ADCB issue as many as 592.2 mn new shares at AED 10.3 each, including AED 1 in nominal value and an AED 9.3 share premium, representing a 30% markdown to ADCB’s 4 September closing price on the ADX. The offer grants 25 rights for every 309 existing shares owned on the eligibility date.
IN CONTEXT- ADCB has been cleaning up its books in the wake of major corporate defaults in recent years, including NMC Health. Earlier this month, the state-backed lender sold USD 1.4 bn in distressed loans to US-based hedge fund Davidson Kempner Capital Management, marking its second such transaction after a similar USD 1.1 bn sale two years ago.
The broader capital markets agenda: ADCB also renewed its mandate to issue up to USD 8 bn in debt in March and USD 2 bn in capital instruments to bolster its funding base. The approved programs cover non-convertible bonds, sukuk, and sustainable-finance instruments across listed and unlisted markets.
UNITED FIDELITY INS. SHAREHOLDERS ALSO APPROVE RIGHTS ISSUE-
United Fidelity Ins. shareholders approve AED 107 mn rights issue in three phases: Shareholders of United Fidelity Ins. approved a plan to raise the company’s share capital from AED 160 mn to AED 267 mn through a AED 107 mn right issue, according to a disclosure (pdf). The increase will be implemented in three phases: AED 30 mn “as soon as possible” following regulatory approval, another AED 30 mn in February 2026, and a final AED 47 mn in December 2026. All shares will carry a nominal value of AED 1 each.
