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Dubai-listed Shuaa Capital has received binding commitments from three entities for the subscription of its mandatory convertible bond (MCB) valued at up to AED 150 million, which is open to new investors.
The investors are Abu Dhabi-listed Eshraq Investments, whose board approved the investment on Friday, United Motors & Heavy Equipment Company LLC, which is part of Abu Dhabi conglomerate Darwish bin Ahmed & Sons Group, and Al Baher Real Estate Development Company LLC.
Al Baher was previously a significant Shuaa shareholder but sold its shares in November 2024.
The MCBs are being issued as part of Shuaa’s debt restructuring efforts, which have taken place over the past year. The bonds are to be issued in two tranches, one open to new investors valued at up to AED 150 million, and the second for noteholders of the entity’s expired bond, valued at up to AED 275.5 million.
They will be issued through private placement and will convert to equity in the company after issuance at AED 0.32 per share. Shuaa’s share price closed at AED 0.235 on Monday.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
