News

Investors approve Dana Gas sukuk restructure

Oil_refineryCertificate holders have voted overwhelmingly in favour of refinancing a $700 million sukuk issued by Dubai-based energy company Dana Gas. The consent of more than 90% of certificate holders, which exceeds the 75% threshold for approval, could bring an end to a long-running dispute that threatened to derail the growing international investor interest in Islamic finance. The dispute was sparked by a decision by Dana Gas to withhold dividends on its sukuk on grounds that the instruments were no longer sharia-compliant. The case raised a number of concerns among international investors regarding the enforcement of creditors’ rights and the lack of standard sharia codification and definitions. Under the new restructuring, certificate holders will be given the choice of exiting their principal investment in return for 90.5 cents per dollar of the face value of their investments or accepting new sukuk certificates with a 4% coupon rate and three year tenor. The vote was welcomed by Dana Gas chief executive Patrick Allman-Ward. "We are extremely pleased to have received consent from an overwhelming majority of sukuk certificate holders, thus confirming the company’s belief that the proposed terms of the deal were fair and in the best interests of all," he said. ©2018 funds global mena

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Jan 04, 2019

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

Roundtables

ROUNDTABLE: Hooked to the global caravan

Jan 04, 2019

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.

MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.