Shuaa Capital (Shuaa), a Dubai-based investment bank, is considering buying back a convertible bond issue worth Dh1.5 billion ($408.5 million) or altering the price at which the bonds would be converted into shares.

The bank said in a statement today (May 26) that it had extended a deadline to reach an agreement with the Dubai Banking Group over the convertible bond issue until June 4.

Shuaa and Dubai Banking Group have been at odds over the issue for months. Dubai Banking Group recently dropped its demand that it have majority representation on the bank's board of directors once the bonds are converted, according to the Shuaa statement.

Shuaa said in the statement that it aimed to reach a deal with the Dubai Banking Group to avoid a legal dispute. – Reuters