Shuaa Capital plans to issue a total of AED 642.5 mn of mandatory convertible bonds (MCBs) as part of its capital optimization plan, according to a DFM disclosure (pdf). The bond issuances are pending regulatory approvals, with conversion valuations to be set by an independent financial advisor.

The breakdown: Shuaa plans to issue AED 367 mn (USD 99.92 mn) in MCBs through a private placement, according to the filing. The investment bank also plans to issue up to AED 275.5 mn (USD 75.01 mn) in MCBs by 31 March 2025, offered to current bondholders of the outstanding bonds issued by a special purpose vehicle owned by Shuaa.

This is not the first time we hear about a bond issuance: Shuaa Capital has been reportedly looking at raising AED 250 mn in bonds to meet senior debt obligations and settle unsecured bonds as part of a wider restructuring program. The company is reportedly eyeing a shortlist of “qualified investors.”

The investment bank also has a new CEO: Shuaa’s board also appointed Wafik Ben Mansour (LinkedIn) as its CEO, according to the statement. Ben Mansour was appointed acting CEO back in November.

Background: Shuaa has been undergoing major restructuring after substantial losses in 2023. Shuaa reached an agreement with bondholders in April to extend the payment terms for some USD 150 mn worth of bonds, and appointed a new management team as part of its capital optimization plan. The investment bank has fully settled around AED 500 mn (USD 136 mn) in margin facilities with multiple UAE banks.

OTHER DEBT NEWS-

Emirates Islamic taps banks for debut sustainability-linked sukuk: Emirates Islamic has appointed Emirates NBD Capital and Standard Chartered Bank as joint global coordinators for its debut benchmark sized USD-denominated senior sustainability-linked sukuk, according to a document seen by Reuters. The issuance will be under Emirates Islamic’s USD 2.5 bn certificate issuance program. Investor calls kicked off yesterday.

Benchmark-sized? A “benchmark sized” issuance is usually at a minimum valued at USD 500 mn.

The lender also tapped our friends at First Abu Dhabi Bank, as well as Abu Dhabi Islamic Bank, Dubai Islamic Bank, and The Islamic Corporation For The Development of the Private Sector to act as joint lead managers and joint bookrunners for the transaction.

**CLARIFICATION- An old version of this article did not mention Emirates Islamic's sukuk were sustainability-linked. We've amended the story accordingly.