Shuaa Capital reaches agreement with bondholders to postpone maturities and offer conversion option

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Option to convert a specified percentage into shares and settle the remainder in cash at a discount

Dubai: “The Gulf”
Shuaa Capital announced that it has reached an agreement with bondholders to change the terms and conditions of outstanding bonds worth $150 million, issued by a subsidiary of Shuaa Capital.
This agreement comes after the company adopted a balance sheet development plan aimed at changing the size of its balance sheet, increasing liquidity, improving its operations, and preparing the way for capital injections new expected in the next twelve months to drive growth.
Under the deal, the company plans to give bondholders the option to convert a certain percentage of their bonds into shares, subject to the approval of the company’s regulators and shareholders, after which any bonds will be remains to be settled for cash at a pre-agreed discount, on or before the revised maturity date of March 31, 2025.
The agreement brings significant benefits to all bondholders and shareholders, as it allows bondholders to take an active part in the company’s growth plan by placing to their growth plans, while at the same time providing an attractive opportunity to invest in the company’s shares by significantly reducing financial obligations, which would translate positively.
This approval is an important step that allows Shuaa Capital to focus on finalizing negotiations with one of the main creditors, before submitting the proposed new capital, which will prepare the path for the next stage of the company’s growth.
Wafiq bin Mansour, Acting CEO of Shuaa Capital, said: “We express our sincere gratitude to all parties for their overwhelming vote of confidence in Shuaa Capital, which confirms their belief in the strength of its ‘ company and its ability to deal with challenges. Despite the challenges that the company has seen recently, I am very grateful, and with the support of the Board of Directors led by Fadel Al-Ali, to allow all the relevant parties to work together to create a bright future for Shuaa Capital’s investments, growth and development. wealth Our vision is to strengthen the position of Shuaa Capital to be at the forefront of companies active in the sector of asset management and investment banking in the region, initiate innovation in this sector and provide unprecedented value to the client – our clients and shareholders.”
Shuaa Capital has started recruiting a new management team and is working to complete the capital development plan as soon as possible. The company plans to publish its audited financial statements for the 2023 fiscal year as soon as negotiations with one of its major creditors are complete.