Shuaa Capital Completes $97.7 Million Convertible Bond Issuance Amid Debt Restructuring

Dubai-based investment bank Shuaa Capital has successfully issued mandatory convertible bonds totaling AED 359 million as part of its comprehensive debt restructuring strategy. This issuance, executed on March 18, 2025, comprises two tranches: AED 274 million allocated to existing noteholders of its $150 million bond due at the end of March, and AED 85 million directed to new investors.

The first tranche addresses the $150 million bond initially set to mature in 2023 but extended twice, now reaching its final maturity. Existing noteholders, including GFH Financial Group, received AED 274 million in MCBs, with GFH's portion amounting to AED 78 million, convertible at a rate of AED 0.32 per share.

The second tranche, valued at AED 85 million, was offered to new investors, reflecting Shuaa's efforts to attract fresh capital and strengthen its financial position. This move aligns with the company's broader strategy to enhance liquidity and operational flexibility.

Shuaa Capital's board had previously approved the expected issuance size of these MCBs, setting the stage for this significant step in the company's restructuring process.

The successful issuance of these MCBs marks a pivotal moment in Shuaa Capital's restructuring journey, aiming to fortify its balance sheet and position the firm for sustainable growth in the competitive financial services sector.