The board of directors of Dubai-listed Shuaa Capital has approved the increase of the company’s share capital following the issuance of mandatory convertible bonds (MCBs).

The investment bank will issue 1.12 billion new shares at a conversion price of AED 0.32 ($0.087).

Earlier this month, Shuaa Capital issued 359 million dirhams ($97.7 million) in two tranches – AED 274 million to existing noteholders of its $150 million bond, which expires at the end of March after two extensions, and AED 85 million to new investors.

The MCBs will bear no interest and will convert into shares subject to a lock-up period of 14 months from conversion.

Source

(Editing by Brinda Darasha; brinda.darasha@lseg.com)