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Sun 28 Mar 2010 08:37 PM

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Waha Capital gets approval for bond issue

Bond issue is mainly for firm's Al Markaz project and to strengthen its balance sheet.

Waha Capital gets approval for bond issue
SHAREHOLDER APPROVAL: Abu Dhabis Waha Capital has won approval from its shareholders for its $272m convertible bond issue and will finance a mixed use project. (Getty Images)

Abu Dhabi's Waha Capital won approval from shareholders for its $272 million convertible bond issue and will use proceeds mainly to finance a mixed use project, the company's chief executive said on Sunday.

In February, Waha Capital said it planned to issue a $272.2 million convertible bond or sukuk to fund its expansion plans.

Speaking to reporters after the company's annual general meeting, Salem Al Noaimi said: "We plan to issue mandatory convertible bonds or sukuks in three tranches starting in July this year."

He added: "It is mainly for our Al Markaz project and to strengthen our balance sheet."

Shareholders of Waha Capital will also receive a 2.5 percent cash dividend and 10 percent bonus shares.

The first phase of the mixed use Al Markaz project in Abu Dhabi is estimated to cost $1.08 billion, the CEO said.

Current shareholders will gain priority for the convertible bonds, followed by strategic investors, he added.

Waha is a diversified investment holding company with interests in aircraft, maritime, land development and financial services. (Reuters)

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