Gulf Navigation Holding (GulfNav) has successfully raised AED 500 million (US$136.15 million) through an oversubscribed Mandatory Convertible Bond (MCB) offering.
The money raised will form a key component of the company’s AED 3.2 billion (US$870 million) acquisition of Brooge Energy Limited and supports the company’s vision to expand into the regional energy infrastructure sector.
Sheikh Theyab bin Tahnoon bin Mohammad Al Nahyan, Chairman of Gulf Navigation Holding, commented: “This offering marks a significant step toward executing the acquisition. It reflects the strong confidence our shareholders have in the company’s vision to grow in the energy infrastructure space. We will continue to focus on completing the next phases of the transaction and strengthening GulfNav’s role as an integrated logistics solutions provider in the region.”
GulfNav strengthens position with Brooge deal
The Brooge acquisition was approved by GulfNav shareholders on 13 March this year, and the agreement was signed on 28 May.
The bonds were offered at AED 1.10 each and will be converted into shares on or before 29 October 2025. Total subscriptions exceeded AED 520 million from eligible shareholders who subscribed through Emirates NBD, the lead receiving bank.
The AED 500 million raised through the MCBs will fund the cash component of the acquisition, while the remaining consideration will be settled through the issuance of approximately 359 million new shares to Brooge at AED 1.25 per share (subject to a one-year lock-up), and an additional AED 2.3 billion in MCBs issued to Brooge, convertible at AED 1.25 per share, also with a one-year lock-up post-conversion.
Founded in 2013, Brooge is one of the most technologically advanced companies in the crude oil storage services sector. It has strengthened its investments and presence in Fujairah and become an important hub in oil storage and exporting.
The Brooge acquisition is expected to strengthen GulfNav’s market position and boost its operational efficiency and competitive edge. It will also diversify the company’s revenue streams and deepen relationships with key strategic partners in the energy sector.
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