Dubai’s Shuaa wins investor approval on new terms for $150m bond payment

Dubai’s Shuaa wins investor approval on new terms for $150m bond payment

Shuaa has been working on a plan to 'right-size its balance-sheet' and 'bolster liquidity'. The deal with bondholders thus eases the Dubai company's path for a new capital infusion, which is expected in the 'next 12 months to drive growth'.

Under the agreement - and subject to regulatory and shareholder approval - Shuaa intends to give noteholders the option to elect to convert a certain portion of their notes into equity. Any remaining notes shall be settled in cash at a pre-agreed discount, ahead or at the revised maturity date of March 31, 2025. (The earlier maturity was for end march 2024.)

"The new terms deliver significant advantages to shareholders and noteholders," Shuaa said in a statement. "They present an opportunity for noteholders to actively participate in the company’s growth plan, while enabling an attractive equity story based on a significant reduction in liabilities, which should translate positively on the company’s financial position and performance."

Shuaa will now shift its attention to finalising negotiations with its senior creditor ahead of the planned capital injection.

Dubai's Shuaa wins investor approval on new terms for $150m bond payment