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SHUAA Capital successfully prices USD 150m bond issuance

SHUAA Capital successfully prices USD 150m bond issuance

SHUAA Capital psc (DFM: SHUAA), the leading asset administration and expense banking platform in the region declares that it has famously priced a USD 150 million bond issuance. The bond rated with a coupon of 7.5% will be the first high yield issuance in MENA since the start of the COVID-19 pandemic in March 2020.

The bond has attracted significant institutional business across the MENA/GCC region and beyond. It will be listed on the London Stock Exchange’s International Securities Market (the ISM) and access to the ISM expected to occur on or around 28 October 2020.

Jassim Alseddiqi, Chief Executive Officer of SHUAA, commented, “SHUAA has resumed making great progress along our path of value creation even during the difficulties arising from the COVID-19 pandemic. We have newly launched several new funds which strengthen our position as the market leader in asset administration and investment banking in the region, as well as passing on our stated intention to focus our business on recurring revenues and low capital intensity business. Therefore, it comes as no surprise that our continued success has been reflected in the high levels of demand for this bond and the nature of the diversified book which we were able to create.”

Joachim Mueller, Chief Financial and Risk Officer, added, “We have set out a clear roadmap for SHUAA’s future growth, coupled with rigorous corporate governance and a commitment to strengthening our balance sheet. Together, this represents a compelling plan for investors and has added to the success of the bond issuance, which will strengthen our spirits and encourages our financial situation going ahead.”

The issuance will see SHUAA raise the full USD 150 million approved by shareholders at a General Assembly of the company held on 14 October 2020.

The deal was led by Standard Chartered Bank and First Abu Dhabi Bank as Global Coordinators. Bank of Sharjah, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank and Standard Chartered Bank acted as Joint Lead Managers. Simmons & Simmons acted as legal counsel to SHUAA and Dentons & Co acted as legal counsel to the International Coordinators and Joint Lead Managers.