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Sun 27 Feb 2011 07:44 PM

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Debt-hit Aldar gets nod for Mubadala convertible bond

Shareholders approve $762m convertible bond, placed with Mubadala fund

Debt-hit Aldar gets nod for Mubadala convertible bond
Aldar in January announced plans to sell assets such as the Ferrari theme park

Abu Dhabi's Aldar Properties said it secured shareholder approval to place its planned issue of convertible bond worth AED2.8bn ($762.3m) with state-owned investment fund Mubadala.

The indebted developer was rescued by a $5.2bn lifeline by Abu Dhabi in January and announced plans to sell properties such as the Ferrari theme park, the world's first park based on the Italian sports car and racing teams.

The shareholders approved issuing the convertible bonds to Mubadala along with other point on the agenda in an extraordinary general meeting on Sunday.

"All the resolutions have been approved, including the convertible bonds," Shafqat Malik, chief financial officer of Aldar, said after the meeting on Sunday.

The meeting was postponed on Feb 20 due to the lack of a quorum. Aldar had earlier issued a 3.56bn dirhams convertible bond to Mubadala that matures in November 2011.

The Abu Dhabi government owns about 31 percent of Aldar.

Aldar, the builder of the Yas Marina Formula One circuit, reported its largest-ever quarterly loss earlier this month, taking writedowns of AED11.3bn in 2010, AED10.8bn booked in the final quarter.