Dubai investment firm Shuaa inches closer to issuing mandatory bonds

Dubai: the Dubai-based investment firm will hope to make progress with its financial restructuring through issuing two mandatory convertible bonds in first quarter 2025.

If this goes ahead - and this requires market conditions to be favorable as well as getting regulator approval - then Shuaa will be able to reduce its debt load by more than Dh500 million.

“The company is now better positioned for business growth, leaving its challenging past behind as it charts a path forward,” said a statement after Shuaa cut its net loss to Dh22 million in Q3-2024 against Dh29.5 million in the second quarter of this year.

“Shuaa aims to increase assets under Management (AuM), secure new mandates and strengthen engagement with existing and new clients as well as its creditors.”

It has taken a lot of time and effort to get the recovery act together. This year, Shuaa did valuation adjustments related to underlying assets of an associate entity. There were also impairments of legacy investments it had made in the UK, all of which are as part of the balance-sheet optimization.

“I am satisfied with the progress we’ve made despite the challenging conditions the company has faced,” said Wafik Ben Mansour, Group CEO of Shuaa. “Our capital optimization plan, which is now in its final stages, combined with our strategic initiatives, will help strengthening Shuaa’s financial foundation and position the company for future growth.

“AI am confident that Shuaa is poised for a new phase of sustainable growth and enhanced market leadership.”