• 02 Apr

    Drake & Scull to issue convertible sukuk in Q2 2018

    Drake & Scull International (DSI) announced on Wednesday that it is targeting to issue a sukuk convertible into equity in the second quarter of 2018.

    The company’s board of directors approved plans for the issuance of convertible sukuk during a meeting on Tuesday with an indicative value of at least $123m (AED450m) or the equivalent in other currencies.

    The sukuk will be issued as private placement or public issuance to be converted to shares over a maximum period of five years, at a price of AED3 per share or at a discount of 25% of the market price of the share, which will be determined at the time of conversion.

    The sukuk issuance is subject to regulatory and shareholders’ approval at the company’s upcoming general assembly meeting, which is scheduled to convene in April 2018.

    Rabih Abou Diwan, investor relations director, DSI, said: “The sukuk issuance comes within the framework of the strategic plan approved by the board of directors of the company, as a succession of the restructuring and recapitalization efforts implemented to secure the required funding for the ongoing and future projects portfolio in the region.

    “The key objective is diversification of our financing; and the sukuk offers a sharia compliant platform that is appealing and reassuring to a larger spectrum of investors, and most importantly to our shareholders.”

    DSI successfully completed a debt restructuring programme across its key markets in the first quarter of the year, and now plans to use the proceeds of the sukuk to enhance the operational capacity of the group within the MEP sector, Diwan added.

    “We are also concurrently working closely with our banks to secure the required working capital facilities for our new projects portfolio and the targeted project awards scheduled for announcement in April 2018.”


Go to TOP