Dubai investment bank Shuaa Capital said on Tuesday it rejected a claim from Dubai Banking Group (DBG) for a refund in a row over $409 million bond conversion deal.

'Shuaa Capital rejects the claim that any amounts are due to DBG because Shuaa has already exercised its contractual option to redeem the bonds by issuing 250 million new shares,' Shuaa said in a statement.

Earlier, Dubai Banking Group said it would start legal action against Shuaa Capital with the aim ' to redeem our original investment in the company and other amounts outstanding including interest.' - Reuters