Waha Board approves issuing AED 1 billion mandatory convertible bonds or Sukuk

Published February 23rd, 2010 - 14:10 GMT

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Waha Capital P.J.S.C. board, the diversified Abu Dhabi-based ADX-listed holding company, decided to issue mandatory convertible bonds or Sukuk with a AED 1 billion value and distribute 12.5% as share dividends as bonus shares.

The announcement came after the company’s Board of Directors meeting in Abu Dhabi, which was led by Hussain Al Nowais, Chairman of Waha Capital, and attended by members of the board and the executive management of the company.

Hussain Al Nowais said, "This decision comes in line with the key developments and achievements accomplished by Waha since we launched its strategy in 2008. Several initiatives have been announced lately including the launch of the multi use project Al Markaz in Abu Dhabi, which represents a quality addition to the industrial sector in the Emirate by providing integrated complexes of warehouses, storage facilities, light industrial compounds as well as housing for about 28,000 skilled workers. These initiatives contributed in leveraging the company's stature and competitiveness on both local and global scales, serving the shareholders and partners' interests in the private and government sectors."

Al Nowais explained that issuing these mandatory convertible bonds or Sukuk will support the company's expansion plans and secure key projects in a number of economic sectors. He said that UAE citizens would benefit as a direct result of involving them in this national company's work plans and that investment opportunities had been prioritized to help drive the economic development in Abu Dhabi and the U.A.E.

Salem Rashid Al Noaimi, CEO of Waha Capital, said: "The company is reviewing a number of projects in various economic sectors that we will announce in due course. Issuing the mandatory convertible bonds or Sukuk will leverage our financial strength and ensure new revenue sources to help us in going forward."

Al Noaimi revealed that the board has proposed an Extraordinary General Assembly Meeting for shareholders on 21st of March to discuss the launch of the mandatory convertible bonds or Sukuk valued at AED 1 billion. The board also called for the Annual General Assembly Meeting on 28th of March to discuss the financial results for the year 2009, following approval from the Emirates Securities and Commodities Authority.

Waha Capital announced last month that it has recorded the highest profits since its inception in 1997, with net profit growing to AED 217 million as of 31 December 2009, compared to AED 40 million during the previous year, representing an increase of 442%. Waha's Operating profits increased by 351% compared to the same period in 2008, reaching AED 212 million. The company’s total operating income also grew 71% over 2008 to AED 846 million. As of 31 December 2009, the company’s operational assets are AED 4.3 billion.