First Abu Dhabi Bank board approves 15 billion dirham rights issue

The latest:

First Abu Dhabi Bank, the UAE’s largest lender, said its board approved a strategic rights issue designed to raise as much as 15 billion dirhams in gross proceeds, subject to shareholder and regulatory sign-off. The bank said the capital gives it additional capacity to pursue growth at home and across its international network while keeping its capital base, liquidity and financial flexibility intact.

Details:

• The mechanics: The offering is expected to generate 15 billion dirhams through the issue of 1,109,467,456 new shares, FAB said. Eligible shareholders may subscribe in proportion to their existing holdings, with the new shares priced at 13.52 dirhams each, a 30% discount to the stock’s closing price on the Abu Dhabi Securities Exchange on November 10, 2026.
• The anchor investor: Mubadala Investment Company, FAB’s largest shareholder, intends to subscribe in full for its entitlement in line with its ownership stake, according to the announcement. The bank did not disclose the size of that stake or the value of Mubadala’s intended subscription.
• The timeline: FAB said the proposed rights issue goes to shareholders for approval at a general assembly meeting scheduled for December 7, 2026, with completion of the transaction expected during the first quarter of 2027.
• The growth targets: For 2026 to 2031, the group is targeting loan growth of 10% to 15% a year and revenue growth of 10% to 15% a year, according to the bank. It also aims to keep return on tangible equity above 17% across the economic cycle, up from a previously announced target of more than 16%.
• The payout plan: FAB set a cumulative dividend ambition of more than 50 billion dirhams over the same period. The bank did not break that figure down by year or specify a payout ratio.
• The track record: Total assets have risen more than 50% since 2020 to 1.4 trillion dirhams, while net profit doubled to 21.1 billion dirhams, the bank said. Return on tangible equity climbed 6.2 percentage points over that span to 19.2%.
• The dividend history: Between 2020 and 2025 FAB distributed 44 billion dirhams in cash dividends, equivalent to roughly 20% of all cash dividends paid across the Abu Dhabi Securities Exchange, according to the bank, which said it maintained its credit rating at AA-.
• Where the money goes: The bank said the additional capital will strengthen client relationships and fund investment in strategic capabilities, including technology and artificial intelligence. It did not break out how much of the proceeds is earmarked for technology spending versus balance-sheet growth.
• The leadership: Chairman Sheikh Tahnoun bin Zayed Al Nahyan said the proposed rights issue would strengthen the bank’s ability to support the UAE’s ambitions and share in the opportunities of the country’s next growth phase. Group CEO Hana Al Rostamani called the proposal “an important strategic step” for FAB’s next phase.

Background:

First Abu Dhabi Bank is the UAE’s largest lender by assets and a core holding of Mubadala, the Abu Dhabi sovereign investor. Its dividend stream has accounted for about a fifth of all cash payouts on the Abu Dhabi exchange over the past six years.

Between the lines:

The raised return target — above 17% against a previous above 16% — signals the bank expects the new equity to be deployed rather than parked, since a larger capital base normally dilutes returns unless lending expands to match. Mubadala’s stated intention to take up its full entitlement limits dilution risk for the sovereign investor and anchors a deal priced at a 30% discount.

What’s next

Shareholders vote at the December 7, 2026 general assembly. Watch the subscription take-up rate, FAB’s share price reaction to the 13.52 dirham offer price, and completion expected in the first quarter of 2027.