Shuaa Capital Secures $116 Million in Convertible Bonds, Strengthening financial Position

Dubai-based investment firm Shuaa​ Capital announced a meaningful capital boost with the approval​ of two ​tranches of mandatory convertible bonds (MCBs), totaling up too ⁣$116 million (425.5 million UAE dirhams). This strategic move strengthens Shuaa’s financial foundation and positions the company for accelerated growth.

The first tranche, valued⁤ at up to $58 million (150 million AED), will be privately ‌placed ‍with investors. ​ A second tranche, reaching a maximum of $58 million (275.5 million AED), will be ​offered to existing bondholders of a related special-purpose entity. Both tranches share ⁤identical conversion terms, with bonds⁤ mandatorily converting into Shuaa Capital equity at a price of AED 0.32 per share shortly after ‍issuance. ⁢This ‍conversion represents a key step in Shuaa’s plan‌ to optimize its capital⁣ structure.

The ⁢issuance is subject to ‍shareholder and⁢ regulatory approvals.The pricing reflects ⁢Shuaa’s ‍strategic ‌growth⁣ trajectory and improved financial standing, following a year of focused efforts to enhance its capital structure. “The transfer price of⁣ 0.32 dirhams⁤ per share reflects Shuaa’s strategic growth path and⁤ the betterment of its financial position,⁤ after a year of progress made by the company in improving its ‌capital structure,” a company statement implied.‍ This ‌represents an attractive investment chance for those seeking exposure to Shuaa’s ‍growth potential.

The move comes‍ as Shuaa⁤ Capital continues to execute​ its strategic growth plan. The company recently saw the departure of Ahmed Al-ahmadi, Managing Director and Board Member, who played a significant role in the ​capital ⁣structure improvements.‍ His contributions were instrumental during a crucial phase of the company’s growth.

This ⁤capital infusion ​positions Shuaa Capital for continued success in the competitive global investment⁣ landscape. The company’s strategic focus on optimizing its capital structure demonstrates a commitment to long-term value creation‍ for its shareholders. The successful completion ⁤of this bond offering marks a significant milestone in Shuaa’s ongoing journey of​ growth and ​expansion.

Shuaa Capital recently secured $116 ​million in ⁢funding through‍ two tranches of convertible bonds. This​ move is aimed at strengthening the company’s financial position‍ and‌ facilitating accelerated‍ growth. [3] ‍ The first tranche worth $58‌ million will ⁢be‍ privately placed with ⁢investors, while the second tranche also‍ worth $58 million ​will be ​offered to ⁤existing bondholders.Both tranches will convert into Shuaa Capital equity at‍ a price of AED 0.32 per share soon‌ after issuance. [2]



It is vital ​to note‍ that this capital ⁤infusion follows the departure⁢ of Ahmed Al-Ahmadi, ‍Managing Director and Board Member, ⁤who was​ instrumental in Shuaa Capital’s recent capital structure improvements. [2] The company emphasizes its commitment‌ to long-term⁢ value creation for ​shareholders.‌ [2]