Dana Gas has issued its new Sukuk (Islamic bonds) and it is now listed on Irish Euronext Dublin stock exchange, the UAE-based company announced.
“We are pleased to have completed the issuance and listing of our new Sukuk. The new sukuk represents a fair consensual deal for the benefit of all our stakeholders,” the company CEO Patrick Allman-Ward, said.
All the legal proceedings are completed and brought to an end by the parties to the Sukuk litigation in all jurisdictions. Parties agreed to stop the legal proceedings in both the UK and UAE courts following the consensual agreement to restructure the Sukuk in May 2018 which received overwhelming approval from both Sukukholders and Dana Gas Shareholders.
Dana Gas has paid $235 million on redemptions, profit payments and early participation fees. Its new Sukuk are downsized to $530 million.
It will have a three-year life, maturing in October 2020 and a new profit rate of 4% annually. The reduced size of the instrument, relaxed dividend covenants and a lower profit will reduce Company’s annual finance cost by $35 million per annum or 63% and provides a strong improvement to the Company’s financial position and support for the Company’s planned annual dividend policy.
“The Company can now move forward with its exploration and development plans to evaluate and develop its world-class portfolio of assets, both in the Kurdistan Region of Iraq and Egypt.” the company CEO commented.
The company had announced in June 2017 that it does not have to pay back its $700 sukuk as they are not Sharia compliant and unlawful and unenforceable under UAE law, Reuters reported.
The company has stated legal proceedings to confirm its claims in British and Emirati courts. Only the purchase undertaking part of the sukuk is regulated by English law, while the mudarabah agreement, sukuk structure which resembles an investment management partnership, underlying that it is regulated by UAE law.