SHUAA Capital successfully prices USD 150m bond issuance

With a coupon of 7.5%, the bond will be the first high yield issuance in MENA since the onset of COVID-19 pandemic in March

SHUAA Capital an asset management and investment banking platform in the region, announces that it has successfully priced a USD 150 million bond issuance. The bond priced with a coupon of 7.5% will be the first high yield issuance in MENA since the onset of the COVID-19 pandemic in March 2020.

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

Jassim Alseddiqi, Chief Executive Officer of SHUAA, commented, “SHUAA has continued to make strong progress along our path of value creation even during the challenges arising from the COVID-19 pandemic. We have recently launched a number of new funds which reinforce our position as the market leader in asset management and investment banking in the region, as well as delivering on our stated intention to focus our business on recurring revenues and low capital intensity business. Therefore, it comes as no surprise that our ongoing success has been reflected in the high levels of demand for this bond and the quality of the diversified book which we were able to build.”

Joachim Mueller, Chief Financial and Risk Officer, added, “We have set out a clear roadmap for SHUAA’s future growth, combined with rigorous corporate governance and a commitment to fortifying our balance sheet. Together, this represents a compelling proposition for investors and has contributed to the success of the bond issuance, which will support our ambitions and strengthens our financial position going forward.”

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 Global Coordinators and Joint Lead Managers.