Abu Dhabi-listed company Dana Gas plans to use proceeds from the sale of its Egyptian assets to pay down its sukuk.

“If a sale of these assets were to go ahead the proceeds of the sale would be used to pay down the Sukuk as required by the terms of the Sukuk,” the company said in a statement to the exchange.

The Sharjah-based energy producer announced in 2019 that it is undertaking a strategic review of its Egyptian oil and gas assets, including the potential sale of those assets.

Earlier in April, Dana Gas said that the strategic review and potential sale of the Egypt assets has been impacted by the COVID-19 pandemic and will not be completed by the end of March 2020 as originally hoped.

“Given the rapidly changing circumstances arising from the global reaction to the COVID 19 pandemic, the Company is not able to predict when this process may complete,” the company said in a bourse statement on April 8.

Dana Gas also announced at the end of March that it is studying a potential demerger of its upstream business into a new company, which will also be listed on the Abu Dhabi Stock Exchange.

(Reporting by Gerard Aoun, editing by Seban Scaria)

(gerard.aoun@refinitiv.com)

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