Dana Gas PJSC’s (DANA) Islamic bonds plunged, lifting yields close to a record, after the United Arab Emirates fuel producer failed to disclose a plan for repaying the debt when it reported full-year earnings.
The $1 billion of 7.5 percent Shariah-compliant notes maturing in October fell to 68.14 on the dollar yesterday, pushing up the yield 86 basis points to 64.8 percent, the highest since Jan. 16. That day, the rate reached an all-time high of 71.8 percent. The yield was at 63.1 percent at 2:33 p.m. in Dubai. Dana Gas, which said yesterday 2011 profit more than tripled, didn’t give investors details of how it plans to pay the sukuk.
“They are running out of time,” Ahmad Alanani, the Dubai- based director for the Middle East at investment bank Exotix Ltd., which trades debt, said by phone yesterday. “The liquidity situation is very, very poor. There may be the willingness to pay, but there may not be the means.”
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