SHUAA Capital PSC: A Strategic Move Towards Bond Amendment

SHUAA Capital PSC, a leading asset management and investment banking platform based in Dubai, is set to make crucial decisions regarding the terms of its bonds. The company's Board of Directors plans to launch a consent solicitation relating to amending the conditions of the bonds worth 150 million US dollars.

SHUAA Capital PSC: A Strategic Move Towards Bond Amendment

Summary

SHUAA Capital PSC has announced a forthcoming resolution by its Board of Directors to potentially amend the terms of its bonds. This strategic move, scheduled for March 13, 2024, may have significant implications for the company's financial future.

SHUAA Capital PSC, a leading asset management and investment banking platform in the UAE, has recently announced a significant development. The company's Board of Directors is set to make resolutions by circulation on March 13, 2024, addressing the launch of a consent solicitation related to amending the terms and conditions of the bonds. These bonds, issued by a SHUAA affiliated special purpose vehicle, are worth 150 million US dollars and due on March 31st, 2024.

This strategic move indicates that SHUAA is proactively managing its financial obligations and is willing to negotiate terms to ensure its financial stability. The decision to amend the terms of the bonds could potentially provide SHUAA with more financial flexibility, enabling it to continue its operations smoothly despite the negative yields reported in the past three months.

However, it is crucial to note that any amendments to the bond terms will need the consent of the bondholders. This consent solicitation process may not be straightforward, especially if the proposed changes are not favorable to the bondholders. Therefore, the outcome of this decision is uncertain and could impact the company's financial standing.

Given the neutral view of the company's future and the current financial scenario, it is suggested to hold the instrument. While the company has shown resilience in its operations and has a strong track record, the negative yields and the uncertainty surrounding the bond amendments make it prudent to wait and see how the situation unfolds.

Source

BOD meeting

Summary

SHUAA Capital p.s.c., a financial investment company licensed by the U.A.E. Securities and Commodities Authority, has its head office in Dubai. The company has announced that its Board of Directors will make resolutions by circulation on March 13, 2024. The resolutions will address the launch of a consent solicitation related to amending the terms and conditions of the bonds, issued by a SHUAA affiliated special purpose vehicle, worth 150 million US dollars due on March 31st, 2024. Other business-related matters of the company will also be discussed. The information was conveyed by Bachir Nawar, the Chief Legal and Compliance Officer of the company.

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