Sharjah-based energy company Dana Gas has completed the issuance of a new Sukuk, the size of which has been reduced to $530 million.
In a statement, Dana Gas said that the issuance of the Sukuk is now listed on Euronext Dublin, formerly known as the Irish Stock Exchange.
In May, Dana Gas reached an agreement with debt holders, including Blackrock, with the company paying $235 million in redemptions, profit payments and early participation fees.
“The new sukuk represents a fair consensual deal for the benefit of all our stakeholders. It is a ringing endorsement that the overwhelming majority of Sukuk holders chose to remain invested with the company,” said Dana Gas CEO, Patrick Allman-Ward.
Dr. Allman-Ward added that the company can now “move forward with its exploration and development plans to evaluate and develop its world-class portfolio of assets, both in the Kurdistan Region of Iraq and Egypt.”
According to Dana Gas, the Sukuk will have a three-year life and will mature in October 2020, with a new profit rate of 4 percent per annum.
The relaxed dividend covenants, lower profit and reduced size of the instrument are expected to rude the company’s finance cost by $35 million per annum, equivalent to 63 percent of its annual finance cost.
In July, Dana Gas announced that it netted $44 million in dividends through its share in Iraqi Kurdistan natural gas provider Pearl Petroleum between January and June.
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