First Abu Dhabi Bank Weighs Rights Issue of About $5 Billion, Bloomberg Says

The discussions are at an early stage and the amount could still change, Bloomberg said. Executives have held informal talks with several large Wall Street banks, but it is not clear whether any have been hired. FAB has not announced a capital raise.

A rights issue of that size would be unusual for an Emirati bank. Abu Dhabi Commercial Bank sought $1.7 billion through a rights issue in 2025, and Abu Dhabi Islamic Bank opens subscription for its own Dh1.75 billion rights issue on November 10, offering new shares at Dh16.45, a 28.8% discount, until November 24. A $5 billion FAB offering would be more than five times the size of ADIB's.

FAB is not short of capital by regulatory measures. It reported a common equity tier one ratio of 14% with its nine-month results, when net profit rose 3%, loans grew 10% since December and net interest margin improved five basis points from a year earlier to 1.93%, according to Gulf News. Its non-performing loan ratio fell to 2.1% from 2.6% a year earlier.

The bank has been active on several fronts this year. In September it sold $500 million of five-year unsecured bonds at a yield of 5.456%, and on Monday it agreed to buy Bahrain-based fund administrator Yasira Financial Services, which will be folded into its securities services business. FAB also arranged a $5 billion facility for Nigeria's government this year.

The Bloomberg report did not set out a timetable. Any offering would add to a busy period for capital raising by Abu Dhabi banks, with ADIB's new shares due to start trading on the Abu Dhabi Securities Exchange on December 18.