Dubai-listed Shuaa Capital has received support of 93% of its noteholders to extend its $150 million bond after down to the wire negotiations over the last week.

The investment bank disclosed today that maturity, which was reached on Saturday, has been extended until the end of the first quarter of 2024, saying it was the first step in its capital optimisation process following a rights issue announced earlier this month.

Shuaa said it had received support from 93% of noteholders at an extraordinary meeting to extend the maturity date.

The bank said it will also continue engaging with the noteholders, who will be offered full principal repayment or the opportunity to subscribe to the capital increase via an exchange mechanism, to be approved by Securities and Commodoties Authority (SCA) and the shareholders of the company.

The board earlier also approved a decrease and subsequent increase in its issued shares for capital optimisation, which will be used to support growth through sustainable profitability, debt reduction and balance sheet strength, a disclosure to Dubai Financial Market (DFM) said.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)