SHUAA Capital is tapping the bond market to raise AED 250 million ($68 million) to meet senior lender obligations and settle unsecured bonds amid restructuring, Zawya has learnt. 

Investors and high-net-worth-individuals from both Abu Dhabi and Dubai are understood to have been approached by the Dubai-listed entity for the issuance of mandatory convertible bonds.

In April, Shuaa Capital reached an agreement with noteholders on a $150 million bond maturity, and on May 1, settled more than AED 500 million in margin facilities with multiple UAE banks.

Sources confirmed to Zawya that SHUAA is targeting a short-list of select qualified investors, and it intends to launch a new corporate strategy and broaden its access to a wider shareholder base. 

The company asked bondholders for a five-month extension last year following the exit of its largest individual shareholder Jassim Alseddiqi, and then secured agreement from them several weeks after the new repayment deadline in April. 

Management and board shakeup

SHUAA has seen a series of high-profile resignations in the past one year including the former CEO Fawad Tariq Khan, who stepped down after nearly 18 months in the role and Bachir Nawar, the head of legal and compliance, who resigned in March 2024.

Following its general assembly in April, the company announced a revamped board with two new members, a new chairman and a new managing director.

A LinkedIn post on Saturday showed that Mazen Farah, who has previously worked with HSBC, Abu Dhabi Commercial Bank, and London-based Jefferies International and ICAP, has been appointed as SHUAA’s new head of capital markets.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)