Shuaa Capital Board of Directors approves the issuance of mandatory convertible bonds

Dubai, December 29 / WAM / Shuaa Capital, listed on the Dubai Financial Market, announced the approval of its Board of Directors for the issuance of two tranches of debt securities convertible into shares in the company’s capital, with a total value of up to 425.5 million dirhams.

The issuance of the two tranches will represent the final step in Shuaa’s plan to improve its capital structure, which reflects its strategic commitment to providing the greatest added value to shareholders. The two issuances are subject to the approvals of shareholders and regulatory authorities.

A first tranche of debt securities convertible into shares in the company’s capital will be issued through a private offering with a maximum value of up to 150 million dirhams, while a second tranche of debt securities convertible into shares will be issued through a private offering with a maximum value of up to 275.5 million dirhams.

This tranche of bonds will be floated and offered to holders of existing bonds issued by a special purpose vehicle affiliated with Shuaa Capital, and will be subject to the conditions of the first tranche, including the mandatory conversion into shares at a price of 0.32 dirhams per share, provided that the conversion into shares also takes place as soon as possible. Possible time immediately after release, reflecting the company’s commitment to completing this process promptly.

The transfer price of 0.32 dirhams per share reflects Shuaa’s strategic growth path and the improvement of its financial position, after a year of progress made by the company in improving its capital structure.

This pricing is in line with the intrinsic value derived from the company’s financial position and the positive future potential that characterizes its business, while this issuance represents an attractive opportunity for investors seeking to benefit from Shuaa’s growth at a fundamental stage in its journey.

As part of the implementation of Shuaa’s growth plan, Ahmed Al-Ahmadi completed his duties as Managing Director and Board Member of the company, playing an important role in Shuaa’s efforts to improve its capital structure during a crucial stage in the company’s journey.

Badr Salim Sultan Al Olama, Chairman of the Board of Directors of Shuaa Capital, said that this step is a decisive moment in the journey of Shuaa Company and its shareholders, as the launch of mandatory convertible bond tranches will reinforce the company’s commitment to providing higher added value to its shareholders, and will reflect the strong foundation that distinguishes Shuaa Company in the region’s markets.

He added that as Shuaa continues to achieve growth, confidence increases that the opportunities the company benefits from will provide significant returns to all shareholders.

He thanked Ahmed Al-Ahmadi in appreciation of his commitment to Shuaa and his valuable contributions during a crucial stage of its journey, which played an essential role in achieving this great achievement.

For his part, Wafiq bin Mansour, CEO of Shuaa Capital, said that the Board of Directors’ approval to issue the two tranches of bonds that are mandatory to be converted into shares is a milestone in Shuaa’s journey to employ its distinguished capabilities to achieve growth, stressing the commitment to proceed with the plan to issue these bonds during the first quarter. From next year, to enable SHUAA to move on a new path of growth and profitability.

With the completion of its capital improvement plan, Shuaa will enter a new phase of growth, consolidate its position as a leading company in the financial markets in the Middle East and North Africa region, and pave the way for enhanced shareholder returns.

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