Business

Drake & Scull International PJSC (" DSI" or the "Company"), a regional leader in engineering and construction solutions, introduced today that it is targeting to release a sukuk exchangeable into equity in Q2 2018.

On 27 March 2018, the DSI Board of Supervisors authorized plans for the issuance of convertible sukuk with a sign worth of minimal AED 450 Million or the equivalent in various other currencies, as personal positioning or public issuance to be converted to shares over an optimal period of 5 years, at a rate of AED 3 each share or at a discount of 25% of the market price of the share, to be determined at the time of conversion.

The sukuk issuance is subject to regulatory and shareholders' authorization at the company's upcoming General Setting up conference, which is arranged to assemble in April 2018.

Rabih Abou Diwan, Investor Relations Director, Drake & Scull International PJSC, specified: "The sukuk issuance comes within the structure of the tactical strategy authorized by the Board of Supervisors of the company, as a sequence of the restructuring and recapitalization efforts implemented to safeguard the called for funding for the ongoing and future tasks profile in the region."

" The key objective is diversity of our financing; and the sukuk uses a sharia compliant platform that is appealing and guaranteeing to a bigger spectrum of capitalists, and most notably to our investors."

" After the effective conclusion of our financial obligation restructuring program across our key markets and the stabilization of the business in Q1 2018, our objective is to utilize the proceeds of the sukuk to enhance the operational capability of the Group in the MEP market. We are also concurrently working carefully with our banks to secure the required working capital facilities for our new projects portfolio and the targeted project awards set up for statement in April 2018."

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