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Tue 23 Apr 2013 12:51 PM

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Dana Gas gets nod for $920m sukuk restructuring

Shareholders at Abu Dhabi-listed energy firm approve plan; bond to be issued on May 8

Dana Gas gets nod for $920m sukuk restructuring
(Photo for illustrative purposes only)

Shareholders of Abu Dhabi-listed energy firm Dana Gas approved on Tuesday a plan to restructure its $920m Islamic bond, the company said.

Last October Dana became the first company in the UAE to miss repayment of a maturing bond, but it subsequently agreed new terms with a creditor committee representing bondholders, which included investment firms Ashmore Group and BlackRock.

Under the plan, the company will repay $70m in cash, with the remaining $850m split equally between two new five-year sukuk - an ordinary Islamic bond and a convertible sukuk - which will pay an average coupon of 8 percent. The new sukuk will be issued on May 8.

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