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. Abu Dhabi sovereign wealth fund Mubadala, which owns a nearly 40% stake in FAB, is backing the deal. 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.
Banks have been tapping equity more as they seek growth; loans increased faster than new deposits. They have also faced higher provisioning and higher impairments as banks build buffers due to the war.
— Matthew Martin
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