The National Bank of Fujairah (NBF) has successfully issued Additional Tier 1 capital securities (AT1 capital) totaling AED1.01 billion ($275 million). This initiative is aimed at boosting its capital structure to support its business and operational strategies, as well as refinancing the existing AT1 capital securities worth $350 million, which are set to be settled on their first call date.
This action was taken following the approval of NBF’s shareholders, granted through a special resolution during the General Assembly Meeting (GAM) held on June 26, 2024, alongside the required regulatory clearances.
The new issuance has been privately allocated to the Government of Fujairah. These capital instruments include a provision for mandatory conversion into ordinary shares at a ratio of AED2.85:1 within two years from the date of issuance.
Read more: UAE’s National Bank of Fujairah records 155.1 percent surge in net profit
Dr. Raja Easa Al Gurg, deputy chairperson, NBF, expressed that the Board recognizes the significance of sustaining a strong and balanced capital position, along with a well-diversified balance sheet, to facilitate future growth and ensure long-term sustainable performance. He noted that the AT1 capital issuance would further strengthen NBF’s position and lay a solid foundation for growth, enabling the bank to address any unforeseen challenges that may emerge from the changing global economy and operating environment.
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