A showdown is brewing in Sharjah, the UAE’s third largest emirate. Sharjah-based Dana Gas, a natural gas-focused E&P company, has a $920m sukuk due in five months, yet the issuer is far short of the required funds to repay the obligation. The sukuk’s price has fallen from above 95 in July 2011 to just 68, as restructuring headlines continue to spook investors.
This situation has gained increasing global attention given the involvement of prominent international advisers and foreign investors and there is a high probability that Dana will become the first public bond restructuring in the UAE’s history.
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