GULFNAV's AED 500M Bond Success Fuels Expansion
Gulf Navigation Holding PJSC successfully completes a major bond offering, raising over AED 500 million for strategic expansion.
Summary
Gulf Navigation Holding PJSC has raised over AED 500 million through a Mandatory Convertible Bond offering to fund its strategic acquisition of Brooge Energy Limited's assets, marking a significant step in its expansion into the energy infrastructure sector.
Gulf Navigation Holding PJSC (GULFNAV), a prominent maritime and shipping company based in the UAE, has achieved a significant milestone by successfully concluding its AED 500 million Mandatory Convertible Bond (MCB) offering. The offering, which surpassed expectations with total subscriptions exceeding AED 520 million, was fully subscribed by eligible shareholders through Emirates NBD, the lead receiving bank. Priced at AED 1.10 per bond, these bonds are set to be converted into shares by 29 October 2025.
This bond offering is a crucial component of GULFNAV's ambitious AED 3.2 billion acquisition strategy aimed at acquiring Brooge Energy Limited's assets and companies. The funds raised will cover the cash component of this acquisition, while the remaining consideration will be settled through the issuance of approximately 359 million new shares to Brooge at AED 1.25 per share, subject to a one-year lock-up period. Additionally, an extra AED 2.3 billion in MCBs will be issued to Brooge, convertible at AED 1.25 per share, also with a one-year lock-up post-conversion.
His Highness Sheikh Theyab bin Tahnoon bin Mohammad Al Nahyan, Chairman of Gulf Navigation Holding, expressed his satisfaction with the outcome, stating, 'This offering marks a significant step toward executing the acquisition. It reflects the strong confidence our shareholders have in the Company’s vision to grow in the energy infrastructure space.' He further extended gratitude to shareholders, partners, advisors, and regulatory stakeholders for their support in the successful execution of this issuance.
The completion of this bond offering underscores GULFNAV's strategic focus on expanding its footprint in the regional energy infrastructure sector. The acquisition of Brooge's assets is expected to enhance GULFNAV's capabilities as an integrated logistics solutions provider in the region, aligning with its long-term growth objectives.
Looking ahead, GULFNAV appears well-positioned to capitalize on the burgeoning opportunities within the energy infrastructure sector. The successful bond issuance not only demonstrates the confidence of its shareholders but also strengthens the company's financial foundation for future growth. Investors should consider the potential for long-term value creation as GULFNAV integrates Brooge's assets and continues to expand its market presence.
Given the positive outlook and strategic direction, the recommendation is to buy GULFNAV shares, as the company is poised for significant growth in the coming years.
Source
Summary
Gulf Navigation Holding PJSC (GULFNAV), a maritime and shipping company listed on the Dubai Financial Market, has successfully completed its AED 500 million Mandatory Convertible Bond (MCB) offering. The total subscriptions exceeded AED 520 million, with bonds priced at AED 1.10 each, set to convert into shares by October 29, 2025. This offering is part of GULFNAV's AED 3.2 billion acquisition of Brooge Energy Limited's assets, aimed at expanding into the regional energy infrastructure sector. The funds will cover the cash component of the acquisition, while the remainder will be settled through issuing new shares and additional MCBs to Brooge. The company will not open a second tranche for major shareholders as the required amount was raised in the first tranche. Chairman Sheikh Theyab bin Tahnoon bin Mohammad Al Nahyan expressed gratitude to shareholders and stakeholders, emphasizing the company's commitment to completing the acquisition and enhancing its role in regional logistics solutions.
