Dubai-listed Shuaa Capital has approved the issuance of mandatory convertible bonds (MCBs) in two tranches with a total value of up to 425.5 million UAE dirhams ($116 million).
The first tranche of the MBCs, which will convert into equity in the investment bank and asset manager, will be issued to investors through a private placement. The value will be up to AED 150 million, with the conversion to take place as soon as practical after issuance at a price of AED 0.32 per share.
The board also approved a second tranche of MCBs with a value of up to AED 275.5 million, which will be offered to existing bondholders of an expired bond issued by a Shuaa-affiliated special purpose vehicle.
This issuance will also follow similar terms set for the first tranche, at a price of AED 0.32 per share.
Both tranches are subject to regulatory and shareholder approvals.
The investment bank and asset manager earlier announced plans to issue the MCBs to boost its balance sheet as the final stage of a restructuring process, which began after the exit of Shuaa’s largest individual shareholder in 2023.
Last week, Shuaa Capital also reached an agreement with its senior creditor, Abu Dhabi-listed FAB, to restructure AED 208 million ($57 million) in outstanding facilities, as part of the debt restructuring.
The investment bank secured agreement for a 12-month temporary waiver of principal instalments and an extension of the existing loan.
(Writing by Bindu Rai, editing by Imogen Lillywhite)
bindu.rai@lseg.com
