Finance

UAE insurance firm Salama to raise up to $48mln in Mandatory Convertible Sukuk following capital reduction

Shareholders approve capital reduction to offset accumulated losses and cancel treasury shares.

The Islamic Arab Insurance Company (Salama), listed on the Dubai Financial Market (DFM), is undergoing a capital restructuring that will see the Takaful provider raise up to 175 million UAE dirhams ($48 million) through a Mandatory Convertible Sukuk issuance following a capital reduction.

The move is part of the company’s plan to restore solvency by offsetting accumulated losses and cancelling treasury shares.

Following completion and final approval by the Securities and Commodities Authority (SCA), Salama will proceed with the MCS through a special purpose vehicle to a select group of strategic investors.

Salama, rated BBB- by S&P with a developing outlook, posted a net profit of AED 8.25 million for H1 2025

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

How currency hedging moves exchange rates

Foreign investors’ growing holdings of dollar-denominated bonds have created a large demand to hedge dollar…

5 hours ago

Beyond exposure: Predicting AI adoption based on comparative advantage

Predictions about the workplace impact of artificial intelligence often begin with what the technology can…

5 hours ago

Financial engineering is no substitute for interest rates: Lessons from Türkiye

The Turkish central bank cut interest rates over 2021-2023, on the politically driven view that…

5 hours ago

Closing the gap in borrowing costs for emerging market firms

Firms in low- and middle-income countries persistently pay more to borrow than firms in high-income…

5 hours ago

The inflation rate fell but many workers’ pay cheques did not keep up

Inflation in the US has receded from its 2022 peak. This column uses payroll records…

5 hours ago

The Inflation Reduction Act’s regional incentives promoted green investment, but did not create jobs

The US Inflation Reduction Act’s Energy Communities provisions aimed to increase clean-energy investment in areas…

5 hours ago