Dana Gas, the United Arab Emirates' largest listed natural gas firm, will not repay a $920 million convertible Islamic bond when it matures on Wednesday and has reached a standstill agreement with bondholders, three sources familiar with the matter told Reuters.
Sharjah-based Dana, hit by payment delays from Egypt and Iraq's Kurdistan region, had a $1 billion sukuk maturing on Oct. 31. It repurchased about $80 million of the sukuk in 2008, leaving $920 million outstanding.
The five-year sukuk, which was issued with a 7.5 percent coupon, has gained international interest as a large chunk of the debt is owned by large investment firms including BlackRock Inc, Ashmore Group and Spinnaker Capital.
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