Dubai-based asset manager Shuaa Capital is set to press ahead with a rights issue as part of the firm’s capital optimisation process.
The decision comes after the firm secured the approval of 93% of its noteholders to extend the maturity of a US$150 million bond.
The bond was originally set to mature on October 28, but after lengthy negotiations, this will now be extended to March 2024.
The firm received board approval in early October to undergo a change to its capital structure, and the extension of the bond is “the first step in developing the timeframe” to deliver the capital optimisation plan.
According to Shuaa Capital, the optimisation is designed to support growth through sustainable profitability, debt reduction and balance street strength while also positioning the company for future dividend distribution.
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