Sharjah's Dana Gas signs $90mln credit facility to pay off its sukuk

Natural gas company says facility will be repaid following planned sale of Egyptian assets

  
Islamic finance. Image used for illustrative purpose.

Islamic finance. Image used for illustrative purpose.

Getty Images

Sharjah-based Dana Gas has signed a $90 million credit facility with Mashreq Bank, which it will use to settle its $309 million sukuk (Islamic bond) by its due date.

The company informed Abu Dhabi Securities Exchange that the credit facility would be used along with cash reserves to settle the sukuk.

The one-year facility, priced at three percent over LIBOR, will be repaid following the planned sale of the company’s Egyptian assets, the company said.

Company financial reports posted to ADX show that gross revenue was down year-on-year from $242 million to $181 million in the first half of 2020, due to lower prices and lower production in Egypt.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

(imogen.lillywhite@refinitiv.com)

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© ZAWYA 2020

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