UAE's Gulf Navigation mulls AED 125 million Sukuk issuance

Gulf Navigation said that the offer to issue the Sukuk will be limited to qualified investors only/Bloomberg

Dubai-based Gulf Navigation, a maritime and shipping firm, has received shareholders’ approval to issue a five-year AED 125 million Sukuk through a private placement to improve its finances.

In a bourse filing, Gulf Navigation stated that the proceeds from the non-convertible Sukuk will be used for various purposes, including the settlement of dues to suppliers, payment of overdue salaries, advance payments to preserve contractual obligations and to meet capital expenditure requirements.

Nitish Bhojnagarwala, VP-Senior Credit Officer at Moody's, said, “We expect Sukuk issuance to remain stable at around $180 billion this year, and the takaful insurance market will see steady growth as insurance premiums pick up in newly penetrated markets.”

Furthermore, the firm said that the offer to issue the Sukuk will be limited to qualified investors only, however, some of the targeted qualified investors may already be current shareholders of the company.