Shuaa steps up support to address frozen credit markets

UAE - Shuaa Capital has announced the strengthening of its specialised corporate restructuring service, to support reenergising the business sector.

Jassim Alseddiqi, Chief Executive Officer of Shuaa Capital said: "The Covid-19 pandemic has had a significant impact on businesses, freezing their credit lines, and pushing several to insolvency. The UAE has been among the first nations to announce a financial stimulus package to support the business community and to direct them back to healthy fundamentals."

Shuaa has also strengthened its advisory services for corporates to execute capital raising through diverse instruments such as mezzanine/sub-ordinated debt, Term Loan B (TLBs), fixed income, convertibles, and preferred equity, among others.

Shuaa Capital is playing a key role in the regional sukuk market as a mandate lead arranger for several issuances, including the GFH Financial Group's $300 million five-year sukuk in early 2020 and Jabal Omar Development Company's $135 million five-year sukuk and The First Group's $135 million Sukuk in 2019. This brings the total amount raised for Shuaa-led sukuk to more than $600 million during the past year and a half, making it the most active non-bank advisor in the Middle East for sukuk issuances.

Alseddiqi further commented: "While credit markets in the US and Europe have come back stronger than before, things might take a little longer in the region given the impact of lower oil prices and less developed capital markets, especially in the corporate debt space."