Dana Gas seeks deal with sukuk holders

Dana Gas seeks deal with sukuk holders
Dana Gas
DANA
8.40% 0.89 0.07

Abu Dhabi – Mubasher: Dana Gas is on the verge of making a deal with sukuk holders to restructure its $700 million Islamic bonds matured on 7 October 2017, sources familiar with the matter said.

The Abu Dhabi-listed gas producer offered two proposals for the creditors. The first entailed redeeming $0.85 for each $1 in cash, while the second proposal was to issue fresh three-year AED 2.39 billion ($650 million) sukuks to cover the remaining value of the Islamic bonds.

Dana had already received the approval of 50% of the creditors on most of the new deal’s terms, sources added.

The yield of the new sukuk may reach 4% that can be increased to 6% in case the UAE's energy producer fails to fulfil its commitment to slash the debt by the end of the second year of the maturity date, they noted.  

Moreover, the Emirati gas company is still in talks with the sukuk holders about its offer to redeem 10% of the Islamic bonds in cash, while creditors want to get 20%. 

In February, Dana offered to pay off 10% of the sukuk in cash and to roll over the remaining 90% over four years at an annual profit rate of 4%, the source added.