First Abu Dhabi bank raises 15 billion dirhams for postwar boom
It’s the latest bank in the emirate to raise money through an equity sale after Abu Dhabi Commercial Bank raised 6 billion dirhams last year and Abu Dhabi Islamic Bank is raising 1.75 billion dirhams.
Key points
- First Abu Dhabi Bank, the UAE’s largest lender, will raise 15 billion dirhams ($4.1 billion) through a rights issue to fund its “next phase of growth.” The bank told analysts it sees higher organic growth opportunities rather than acquisitions ahead, positioning itself for a postwar investment boom in the country.
- Banks have been tapping equity more as they seek growth; loans increased faster than new deposits.
Abu Dhabi sovereign wealth fund Mubadala, which owns a nearly 40% stake in FAB, is backing the deal.
They have also faced higher provisioning and higher impairments as banks build buffers due to the war.
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