Sharjah-based energy company Dana Gas has finished the issuance of a new Sukuk, the size of which has been reduced to $530 million.
In a proclamation, 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 a conformity 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 be fully developed by 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.
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