Dubai – Mubasher: DXB Entertainments has agreed to financing deal worth around AED 1.2 billion ($330 million) through convertible bonds.

Meraas Holding will issue AED 12.35 million in bonds, while the AED 1.223 million in bonds will be issued by DXB Entertainments' its majority shareholder Meraas Leisure and Entertainment.

The coupon rate for the bonds has been set at 8% per year, the Dubai-based theme-park operator said in a statement released on Thursday.

It added that "bondholders will have the right to subscribe for the Principal Amount in up to three (3) tranches over a six (6) month period after the initial issuance date."

The "strike price" was also set at AED 1.04 per share.

The maturity date of the bonds is from the issuance date, which is yet to be determined by the Securities and Commodities Authority (SCA) but will mature on 30 June 2026.

The conversion period for the bonds begins on 1 January 2021 and ends 30 June 2026, DXB revealed.

In March, DXB's board approved the AED 1.2 billion financing from Meraas.

DXB last reported AED 1.116 billion in losses for the full-year 2017, a rise from AED 484.8 million in 2016.