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Dana Gas enters $90m credit facility agreement with Mashreq Bank

Dana Gas enters $90m credit facility agreement with Mashreq Bank
The credit facility will enable the company to redeem the Sukuk
Mashreq
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UAE – Mubasher: Dana Gas has signed a credit facility agreement worth $90 million with Mashreq Bank, according to a press release on Thursday.

The one-year facility, which could be extended for additional four years, is priced at an initial 3% per annum margin over LIBOR. 

The credit facility agreement was entered after Dana Gas had announced its objective to explore financial opportunities to settle its Sukuk by the due date.

Hence, the credit facility will enable the company to redeem the Sukuk, amounting to $309 million, at the maturity date of 31 October 2020.

Dana Gas will repay Mashreq Bank after the planned sale of its Egyptian assets is completed.

The CEO of Dana Gas, Patrick Allman-Ward, said: "This facility is a testament to Dana Gas’s financial and operational strength despite the challenging market conditions brought about by the global health pandemic and its negative impact on the global economy and oil and gas prices."

The CEO of Mashreq Bank, Ahmed Abdelaal, commented: "Despite challenging circumstances posed by Covid-19 and the uncertainty with macro-economic conditions, Dana Gas has exhibited robust financial strength and this partnership demonstrates Mashreq’s commitment to being a leading catalyst for the growth of the energy sector in the region."