SHUAA Capital has secured agreement with noteholders to settle its $150 million bond following weeks of negotiation.

The bond matured at the end of last month following a five-month extension amid social media speculation among retail shareholders with agreement reached almost three weeks after deadline.

A Dubai Financial Market (DFM) disclosure on Friday by the investment bank and asset manager said noteholders will be given the option to convert a portion of their notes to equity, with the remainder to be settled in cash at a pre-agreed discount by 31 March 2025.

SHUAA hinted at a future expected capital injection but did not specify in its disclosure where the capital injection would be coming from, saying: “With this phase concluded, the company 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.”

The news will be unexpected for some, after reports earlier this month that bondholders would reject the offer - which would involve them receiving an 80% haircut in cash settlement with equity in the company.  

SHUAA said the new terms deliver ‘significant advantages to shareholders and noteholders’ who can now participate in the company’s growth plan.

The Dubai-listed entity has been suspended from trading for several weeks having not yet filed audited financial results for 2023, and reported a net loss of AED 570 million ($155 million) for the first nine months of the year.  

The entity is chaired by Fadhel Al Ali, who also chairs Dubai Financial Services Authority (DFSA).

SHUAA has projected a troubled image with a series of resignations in management.

The disclosure added that a new management team is being put in place and that the company will focus on its capital optimisation plan and announce a new share issuance, adding that audited financial statements will be submitted following negotiations with its senior creditor.

(Reporting by Imogen Lillywhite; editing by Brinda Darasha)