Investment company, Shuaa Capital has planned to raise $150 million (AED550.5 million) with the aid of issuing bonds through a private placement, to be listed outside of the United Arab Emirates.
On Monday, the company disclosed its plans to the Dubai Financial Market (DFM), where the Board of Directors approved the issuance. The planned bond issue is expected to be out within weeks for use.
The UAE government along with private sector enterprises will largely benefit from the issuances, wherein they are availing the recent low-interest rates to mine debt funds. The validation by stakeholders will help in the authorization for the board to undertake all the legal procedures required for the issuance of bonds.
The company will utilize the proceeds from the issue and bring changes to its investment strategy portfolio.
Shuaa Capital’s net profits in the H1 this year reached to be AED164 million, ruling out the mark-to-market losses on portfolio investments. Additionally, the company’s borrowings recorded AED2.777 billion with 81.82% to be repayable within a year from the month (June) end.