UAE’s Dana Gas Raises Loan, Avoids Further Restructuring

UAE energy company Dana Gas raised a $ 90 million loan to buy back $ 309 million in bonds matured at the end of October and avoid a third debt restructuring.

The company, whose main assets are in Egypt and the Iraqi Kurdistan region, announced on Thursday that it had obtained a $ 90 million one-year loan from Mashreq Bank.

“In conjunction with the company’s cash reserves, the facility will allow full repayment of the sukuk on the October 31, 2020 maturity date,” he said.

In July, Dana hired the financial firm Houlihan Lokey to advise her on sukuk, or Islamic bonds, which she had already restructured twice.

The new loan, which earns an initial 3% margin on the London Interbank Offered Rate and could be extended for another four years, will be repaid when Dana completes the planned sale of its Egyptian assets, he said.

Sources told Reuters last month that the company was negotiating details of the sale of those assets to Texas-headquartered IPR Energy.

The company rocked the global Islamic finance industry in 2017, when it said it would not redeem its $ 700 million sukuk, arguing it was no longer valid under UAE law. Arab Emirates due to changes in Islamic financial practices.

After a long legal battle, it reached an agreement with the creditors in 2018. This restructuring followed a previous one in 2012.

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