Shuaa claims bond row now a legal matter

Sunday saw Dubai-based investment bank Shuaa Capital announcing that since a $409 million bond conversion dispute it has with Dubai Banking Group is a legal matter, regulators should avoid intervening in it.

Shuaa pointed to several questions which "required very careful consideration" and had to be addressed as "matters of law and public policy," in a letter to the UAE's bourse watchdog Emirates Securities & Commodities Authority (ESCA) posted on the Dubai bourse website.

Shuaa said, "We hope that the concerned authorities will treat the matter accordingly and it will not take decisions that effectively pre-judge the issues."

Stock price of Shuaa Capital fell 9.8 percent during the trading session as the high-profile wrangle continued.

On 16th June, a Shuaa decision on the bond conversion, demanding the return of its investment with interest was rejected by Dubai Banking Group (DBG), an investment arm of a unit of the emirate's ruler.

It was confirmed by Stock market operator Dubai Financial Market that the newly issued shares would not be registered in name of Dubai Banking Group until it received a joint letter from the two parties or an order from authorities to register the shares.