UAE's Dana Gas says missed $1 bln sukuk deadline
Thursday, 01 November 2012
DUBAI: Dana Gas, the Sharjah-based natural gas company, on Thursday said it failed to pay the outstanding $920 million on an Islamic convertible bond that matured on Wednesday.
The UAE's largest listed natural gas firm, hit by payment delays from Egypt and Iraq's Kurdistan region, said it had also missed a $18.75 million accrued profit payment due on October 30.
"Dana Gas is in ongoing discussions with an ad-hoc committee of sukuk holders over terms to amend and extend the sukuk," it said in a statement.
Dana had a $1 billion sukuk maturing on Oct. 31. It repurchased about $80 million of the sukuk in 2008, leaving $920 million outstanding.
The five-year sukuk, which was issued with a 7.5 percent coupon, has gained international interest as a majority of the debt is said to be owned by large investment firms including BlackRock Inc and Ashmore Group. (Reuters)