SHUAA Capital Guides Salama's Strategic Restructuring
SHUAA Capital has been appointed as the exclusive financial advisor for Salama's capital restructuring, marking a pivotal moment in the UAE financial sector.
Summary
SHUAA Capital is set to advise Islamic Arab Insurance Company (Salama) on a strategic capital restructuring plan, including a Mandatory Convertible Sukuk issuance to strengthen Salama's financial position.
In a significant development for the UAE's financial landscape, SHUAA Capital, a leading asset management and investment banking platform, has been appointed as the exclusive financial advisor for the Islamic Arab Insurance Company, commonly known as Salama. This appointment is part of Salama's capital restructuring plan, which has been approved by its shareholders. The plan includes a capital reduction followed by the issuance of a Mandatory Convertible Sukuk (MCS), aimed at fortifying Salama's capital base and enhancing its solvency position.
This strategic move not only underscores SHUAA's standing as a trusted advisor in the region's capital markets but also highlights its strategic focus on expanding its investment banking business. By securing high-impact advisory mandates, SHUAA continues to deliver significant value to its clients and shareholders, reinforcing its reputation in the industry.
The restructuring plan is a milestone for Salama, representing a crucial step towards enhancing its financial resilience and supporting long-term growth. The MCS issuance, valued at up to AED 175 million, will provide Salama with a robust capital structure that aligns with regulatory requirements and shareholder interests. This issuance is expected to be completed in the coming months, pending all necessary regulatory approvals.
Nabil Al Rantisi, Group CEO of SHUAA, expressed pride in advising Salama on this landmark transaction, emphasizing SHUAA's expertise in structuring innovative capital solutions. He highlighted the longstanding relationship between SHUAA and Salama, rooted in a shared commitment to strengthening the UAE's financial and insurance sectors through strategic initiatives that drive sustainable growth.
Both SHUAA and Salama are listed on the Dubai Financial Market, ensuring transparency and governance throughout the restructuring process. This collaboration not only benefits the involved parties but also contributes positively to the broader financial ecosystem in the UAE.
Given SHUAA's robust track record and the strategic nature of this transaction, investors might consider a 'buy' stance on SHUAA's shares. The company's ability to secure significant advisory roles and its focus on innovative financial solutions position it well for future growth.
Source
Summary
SHUAA Capital has been appointed as the exclusive financial advisor for Islamic Arab Insurance Company (Salama) to assist with its capital restructuring and issuance of a Mandatory Convertible Sukuk (MCS). This strategic move aims to strengthen Salama's capital base and solvency. The restructuring plan, approved by Salama's shareholders, involves a capital reduction followed by an MCS issuance of up to AED 175 million, aligning with regulatory requirements and shareholder interests. SHUAA's appointment highlights its expertise in investment banking and its focus on expanding fee-based income through impactful advisory roles. The MCS issuance is expected to be completed in the coming months, pending regulatory approvals. Both companies are listed on the Dubai Financial Market, ensuring transparency and governance throughout the process.
