Shares in Abu Dhabi-listed Dana Gas tumbled on Tuesday to their lowest finish since Oct. 4 after sources familiar with the matter said the firm would not repay its sukuk on maturity. But Gulf stock markets finished near-flat in quiet trade, amid a post-holiday lull in activity.
Shares in Dana dropped 4.3 percent to 0.43 dirhams, having dipped 8.5 percent intra-day. Dana has reached a standstill agreement with bondholders on its $920 million convertible sukuk maturing Oct. 31, which is effective for up to six months, the sources told Reuters. Dana declined to comment.
"This is going to shake the faith of investors (in sukuk) big time," said a Dubai-based trader, who asked not to be identified. If the payment is not made on Wednesday, Dana will become the first UAE company not to repay a sukuk on maturity.
No comments:
Post a Comment