Shuaa Capital gets ready to issue convertible bonds

Dubai: Shuaa Capital, the leading regional investment banking institution, yesterday said that shareholders had approved the issuance of Dh1.5 billion in convertible bonds to be subscribed in full by the recently-established Dubai Banking Group, and agreed to raise the ceiling of foreign ownership from its current 40 per cent to 49 per cent.

The resolutions were adopted at an extraordinary general assembly meeting held in Dubai yesterday.

According to the agreement which was announced last June, the Dubai Banking Group will provide financing to Shuaa Capital on a convertible basis in the amount of Dh1.5 billion ($408 million) in support of company's business expansion in the UAE and into regional markets.

Majid Saif Al Ghurair, Shuaa Capital's chairman, said: "We strongly believe that the agreement with the Dubai Banking Group will be mutually beneficial and complementary. The transaction will be executed once all necessary procedures are concluded."