1. It shall be permissible for the company – based upon prior approval of the SCA – to issue negotiable bonds or Sukuk that are either convertible or non-convertible into shares in the company with equivalent values per each issue. 2. The bond or Sukuk shall remain of a registered type until its value is paid in full. 3. It shall not be permitted for bonds or Sukuk to be converted into shares unless the prospectus or issuance terms so provide. If conversion is decided for bonds or Sukuk which are not obliged to be converted into shares, the holder of the bond or Sukuk alone shall have the right to accept the conversion or to collect the nominal value of the bond or Sukuk. 4. Notwithstanding the provisions of Articles [196], [199], [200] and [201] of this Decree Law, it shall be permissible for the company – subject to the special resolution approving the issuing of bonds or Sukuk that are convertible into shares – to increase its capital by converting such bonds or Sukuk into capital shares.
Interpretation and application must be checked against the official text and current version.