SHUAA’s $150mn bond is 1st high-yield issuance in MENA during pandemic

SHUAA Capital, the leading asset management and investment banking platform in the Middle East, has successfully priced a $150 million bond at 7.5 percent becoming the first high-yield issuance in MENA since the COVID-19 outbreak.

The bond has grabbed attention from significant institutions across the MENA and GCC region and beyond. It will be listed on the London Stock Exchange’s International Securities Market (the ISM) which is expected to be on or around October 28.

Jassim Alseddiqi, Chief Executive Officer of SHUAA, commented that even during the crisis that occurred due to pandemic SHUAA has maintained its progress along with the path of bank’s value creation and the high-level demand for this bond is just a reflection of it.

“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.”

Joachim Mueller, Chief Financial and Risk Officer stated that “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 amass the complete $150 million approved by shareholders at a General Assembly of the company which was held on 14 October 2020.

The deal was led by Standard Chartered Bank and First Abu Dhabi Bank (FAB) as Global Coordinators and Joint Lead Managers along with Bank of Sharjah, Emirates NBD Capital, Mashreq bank.

The international law firm Simmons & Simmons acted as legal counsel to SHUAA and Dentons & Co worked for Global Coordinators and Joint Lead Managers.