Gulf Navigation Holding, listed on the Dubai Financial Market, announced the successful completion of its mandatory convertible bond issuance, raising 500 million AED. The subscription exceeded 520 million AED from eligible shareholders who participated through Emirates NBD, the subscription bank. The bonds were offered at a price of 1.10 AED per bond, which are set to convert into shares on or before October 29, 2025.
This issuance is a crucial element of the strategic acquisition deal valued at 3.2 billion AED for assets and companies belonging to Borouge Energy Ltd, aligning with the company’s vision to expand within the region’s energy infrastructure sector. The proceeds from the 500 million AED bond will fund the cash component of the deal. The other two portions will be financed through the issuance of approximately 359 million new shares to Borouge at a price of 1.25 AED per share, with a one-year lock-up period, and a separate issuance of convertible bonds worth 2.3 billion AED to Borouge, also converting to shares at the same price, which will likewise have a one-year lock-up period post-conversion.
Sheikh Diab bin Tahnoun Al Nahyan, Chairman of Gulf Navigation Holding, stated: “This subscription marks a significant step in executing the acquisition deal and reflects shareholder confidence in the company’s vision for expanding in the energy infrastructure sector. We remain focused on completing the remaining phases of the deal to bolster Gulf Navigation’s position as a comprehensive provider of logistics solutions in the region.”
He added, “On behalf of the board of directors, I extend my sincere gratitude to all shareholders who participated in the subscription for their continued support and strong trust, and I appreciate the partners, advisors, and regulatory bodies that contributed to the success of this issuance. We are committed to proceeding with the acquisition timeline as planned, ensuring a smooth integration of the new assets and maximizing operational efficiency and sustainable value for shareholders.”
The company has confirmed that the subscription window for the second tranche intended for major shareholders will not be opened, as the full amount has already been raised from the first tranche. Thus, the subscription process has officially closed, and no further applications will be accepted.