Abu Dhabi’s Aabar raises capital by $249m

09 June 2010

Capital raised through bonus shares and bonds

Abu Dhabi’s Aabar Investments has increased its capital to AED4bn ($1.1bn) through bonus shares and convertible bonds.   

The increase was the result of the issuance of AED312.8m bonus shares and the conversion of convertible bonds into AED600m shares, according to a statement posted on the Abu Dhabi Securities Exchange (ADX).

Aabar’s share capital stood at AED3.128bn at the end of March 2010.

In mid-May, Aabar said it will sell AED1.5bn of convertible bonds to International Petroleum Investment Company (IPIC), at a price of AED2.50 per share. IPIC owns a 71 per cent share in Aabar.

Last year, it issued AED6.6bn convertible bonds to IPIC, of which AED2.2bn were converted.   

On 23 May, Aabar, which has stakes in Virgin Galactic and German car maker Daimler, entered into a AED2.9bn three-year loan agreement with a number of international and local lenders.

Analysts have speculated that the loan could be used to refinance debt that is maturing in the near future. Aabar has a AED5.968bn loan from banks maturing this month, while its total borrowings, all term loans stood at AED15bn at the end of 2009 (MEED 23:5:10).

In April this year Aabar cancelled a AED6.2bn takeover agreement for Dubai-based Arabtec Holding.     

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