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