Shuaa Capital,  a leading asset management and investment banking platform in the region, has reached an agreement with its noteholders to facilitate the amendment of the terms of its outstanding $150 million bond, issued by a Shuaa-affiliated SPV.

 

As announced previously, the Dubai-based group is pursuing an optimisation plan to right-size its balance sheet, bolster liquidity, enhance its operational metrics and pave the way for a new capital infusion expected in the next 12 months to drive growth.

 

Under the agreement (which is subject to regulatory and shareholder approval), the company will give noteholders the option to elect to convert a certain portion of their Notes into equity, following which any remaining Notes shall be settled in cash at a pre-agreed discount, ahead or at the revised maturity date of 31 March 2025.

 

The new terms deliver significant advantages to shareholders and noteholders. They present an opportunity for noteholders to actively participate in Shuaa Capital’s growth plan, while enabling an attractive equity story based on a significant reduction in liabilities, which should translate positively on the company’s financial position and performance.

 

With this phase concluded, Shuaa will shift its attention to finalising negotiations with its senior creditor ahead of an envisaged capital injection aimed at paving the way for the next growth phase of the company.

 

Acting CEO Wafik Ben Mansour lauded all stakeholders for their resounding vote of confidence in Shuaa Capital, reaffirming their belief in the inherent strength and resilience of its business. 

 

"While recent months have presented challenges, I am grateful, with the support of our dedicated Board Members under the stewardship of Fadhel Al Ali, that stakeholders could come together to chart the path for investment, growth, and prosperity for the Company. Our vision is to position Shuaa at the forefront of the region's asset management and investment banking arena, driving innovation, and delivering unparalleled value to our clients and shareholders," he added.

 

The company is putting in place a new management team and is working to complete its capital optimisation plan imminently. 

 

It will submit audited FY 2023 financial statements once negotiations have been finalized with its senior creditor. It will also announce a new share issuance in due course, subject to regulatory and shareholder approval.

 

Established in 1979, the 45-year-old company is part of the economic infrastructure of the UAE. Its investment banking division has led a number of historic IPOs, including the region’s biggest-ever IPO of DP World in 2007.

 

Global investment bank Houlihan Lokey and international law firm Baker Botts respectively acted as financial and legal advisors to the Company.-TradeArabia News Service