FAB seeks AED 15 bn in rights issue

First Abu Dhabi Bank (FAB) is going ahead with plans to raise AED 15 bn through a rights issue to finance its next growth phase, after its board approved the move, according to an ADX disclosure (pdf). While less than earlier reports of an AED 18.4 bn issuance, it is still poised to be the largest ever rights issuance to hit the ADX.

The nitty-gritty: The bank plans to issue 1.11 bn shares at AED 13.52 apiece, subject to shareholder and regulatory approvals. The offering is priced 30% below its 10 November closing price. The raise is set to be backed by a big name: sovereign wealth fund Mubadala, which holds a 37.9% stake in the lender, has already pledged to take its full pro-rata slice.

Capital for the next leg: The proceeds will support expansion across both FAB’s UAE operations and its international franchise, including investments in technology and AI, while preserving capital and liquidity buffers. The fresh equity comes on the back of an ambitious 2026-2031 playbook targeting 10-15% annual loan and revenue expansion and over AED 50 bn in cumulative dividends, all while holding its Common Equity Tier 1 ratio above 14%.

REMEMBER- FAB would be joining a queue, as several names in the UAE banking sector have turned to shareholders to keep credit flowing. The common denominator is a lending boom running ahead of deposits. Four banks have announced or completed rights issues since 3Q 2025, bringing the total to about AED 11.5 bn:

• Abu Dhabi Islamic Bank’s AED 1.75 bn rights issue opened for subscription earlier this week;
• Abu Dhabi Commercial Bank (ADCB) closed its AED 6.1 bn December raise with all 592.2 mn shares subscribed and demand for additional stock exceeding supply by 3x;
• Sharjah Islamic Bank (SIB) raised AED 2.59 bn in May;
• United Arab Bank secured AED 1.03 bn in 3Q 2025.

Fresh equity offers another way to expand balance sheets without stretching capital ratios. SIB’s capital adequacy ratio rose to 19.5% in June from 16.2% at end-2025, with the raise driving much of the increase, while ADCB said its issue would help it stay ahead of tighter capital requirements for systemically important banks.

What’s next: Shareholders will vote on the proposal on 7 December. Completion is expected in the first quarter of 2027.

ADVISORS- FAB is serving as lead manager, bookrunner, and sole receiving bank, with JPMorgan acting as financial advisor and Allen Overy Shearman Sterling providing counsel.