Dubai-based shipping firm Gulf Navigation Holding (GulfNav) has secured AED 500 million (USD 136 million) through the sale of Mandatory Convertible Bonds (MCBs), which will partly finance its AED 3.2 billion acquisition of Brooge Energy Limited (BEL).
The remaining amount will be covered by issuing approximately 359 million new shares to Brooge at AED 1.25 each, subject to a one-year lock-up period. Additionally, GulfNav will issue AED 2.3 billion in MCBs to Brooge, also convertible at AED 1.25 per share and locked in for one year following conversion.
The transaction involves the acquisition of assets and subsidiaries from NASDAQ-listed Brooge Energy Limited, including Brooge Petroleum and Gas Investment Company FZE and its Phase III counterpart.
GulfNav, currently the sole crude tanker operator listed on the Dubai Financial Market, announced that it will not proceed with a second tranche of the bond offering, initially earmarked for key shareholders, as the first tranche was fully subscribed.
The MCBs were priced at AED 1.10 each and are scheduled to convert into shares by or before 29 October 2025. The overall transaction is anticipated to close in the third quarter of 2025.
As a key player in marine transport and oil storage, GulfNav is set to significantly expand its infrastructure with the acquisition of Brooge’s facilities. The deal is expected to double its storage capacity, particularly in Fujairah, one of the UAE’s most strategic bunkering hubs.
