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| 21 June, 2018

Dana Gas wins approval for $700mln sukuk restructuring

All shareholders present or by proxy voted unanimously in favour of the Sukuk Al Mudarabah restructuring, said a statement from the company.

UAE's Dana Gas building in Cairo.

UAE's Dana Gas building in Cairo.

REUTERS/Mohamed Abd El Ghany

UAE-based Dana Gas, the largest regional natural gas company in the Middle East, said it has won approval from its key investors to complete the consensual restructuring of its $700 million sukuk (Islamic bond) at today’s (June 21) General Assembly Meeting.

All shareholders present or by proxy (representing a quorate of over 62.3 per cent of its shareholders) voted unanimously in favour of the Sukuk Al Mudarabah restructuring, said a statement from the company.

This follows the previously announced consent for the restructuring terms from 90.9 per cent of the 9 per cent ordinary sukuk certificateholders and 96.4 per cent of the 7 per cent exchangeable sukuk certificateholders with none voting against, demonstrating overwhelming support for the transaction by all stakeholders, it stated.

The Emirati group said the transaction represents an accretive and optimal outcome for all the parties, providing a satisfactory solution to the issues surrounding both the company’s capital structure and the uncertain legal position of the sukuk.

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Dana Gas CEO Patrick Allman-Ward said: "We are delighted to have received the approval of all key stakeholders to complete the restructuring of our Sukuk Al Mudarabah, and to have had overwhelming support from both shareholders and certificateholders."

"The level of support underlines the consensual nature of the restructuring and the continued support of both sukukholders and shareholders of the company is testimony to our financial strength and our exciting future growth prospects," stated Allman-Ward.   

According to him, Dana Gas is well placed to deliver value for all stakeholders.

"We are making good progress in the Kurdistan Region of Iraq and are working hard to deliver a significant expansion program there this year. To this end we expect drilling to commence soon in both our world-class fields and debottlenecking work is underway to expand our output by 20 per cent in the fourth quarter of 2018," stated the top official.

"In Egypt, we recently received a payment of $40 million from the government which will allow us to proceed with drilling further onshore wells to increase production to plant capacity," he added.

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