Dubai’s Gulf Nav Raises $136mln From MCB Sale To Part Fund Acquisition of Brooge Assets

Dubai-based ship operator Gulf Navigation Holding (GulfNav)  has raised 500 million dirhams ($136 million) from the sale of Mandatory Convertible Bonds (MCBs), which will fund part of the AED 3.2 billion cost of acquiring Brooge Energy Limited (BEL).

The remainder will be funded 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.

The deal is for the acquisition of the assets and subsidiaries, including Brooge Petroleum and Gas Investment Company FZE, and Brooge Petroleum and Gas Investment Company Phase III FZE, from NASDAQ-listed Brooge Energy Limited.

Gulf Nav, the only crude shipper listed on the Dubai Financial Market, said it will not open up a second tranche of bond sale, originally reserved for major shareholders, as the full amount was raised in the first tranche.

The bonds were offered at AED 1.10 per bond and will be converted into shares on or before 29 October 2025. The deal is expected to be finalised by Q3 2025.

GulfNav is a major operator in maritime transport and oil storage. The acquisition of Brooge, with its facilities for the storage of fuel oil, crude oil, and petroleum products, is expected to double GulfNav’s storage infrastructure, particularly in Fujairah, a critical bunkering port in the UAE.