Gulf Navigation is planning to issue Dh125 million sukuk to boost its finances. Courtesy Gulf Navigation
Gulf Navigation is planning to issue Dh125 million sukuk to boost its finances. Courtesy Gulf Navigation
Gulf Navigation is planning to issue Dh125 million sukuk to boost its finances. Courtesy Gulf Navigation
Gulf Navigation is planning to issue Dh125 million sukuk to boost its finances. Courtesy Gulf Navigation

Gulf Navigation given shareholder approval for Dh100m sukuk


Sarmad Khan
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Gulf Navigation, a Dubai transport and shipping company, received shareholder approval to issue Dh100 million Sharia-compliant bonds as part of its capital increase drive.

The mandatory convertible sukuk will be privately placed to Wahat Al Zaweya, a real estate development company, Gulf Navigation said in a statement on Monday to the Dubai Financial Market, where its shares are traded. The shareholders, who met on November 15, also unanimously approved to raise the company’s capital to Dh1.02 billion.

The three-month sukuk, being issued at par value of Dh1 will be automatically converted into company’s shares on February 18.

Gulf Navigation is using the proceeds to expand its operations. It is “finalising construction of new oil tankers and purchasing new ships to transport livestock to diversify the [company’s] commercial operation”, the company said.

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The move follows the Gulf Navigation’s Dh448.33m rights issue in March. That issue was 82 per cent subscribed and the company only issued 367.54m new shares with a face value of Dh1 per share, pushing Gulf Navigation's paid-up share capital from Dh551.66m to Dh919,2m. The authorised share capital of the company is Dh1bn, it said.

Gulf Navigation swung to a loss in the second quarter of this year after payments to settle a legal dispute with a Chinese company and maintenance expenses for two vessels dented profitability.

The Dubai company reported a net loss of Dh19.7m in the three months ending June 30. Operating revenue, however, rose to Dh33.46m in the second quarter, from Dh30.98m in the year earlier period.

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Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D 
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India

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Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

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