UAE’s first sukuk restructuring forecast - FT.com

Bond traders are betting that the United Arab Emirates may soon see the country’s first public restructuring of an Islamic bond.
The yield on the $920m sukuk from Dana Gas, the Sharjah-based energy company, has soared this week as the price sunk, highlighting investors’ concern over Dana’s ability to repay the debt.
Although companies in the UAE have extended the maturities on tens of billions of dollars in bank loans since the onset of the financial crisis, no sharia-compliant bonds have been restructured so far. Saudi Arabia and Kuwait have seen companies default on Islamic bonds, prompting complex debt negotiations.

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