Dana Gas Share Gains Propel World Beating Sukuk: Islamic Finance - Bloomberg

Dana Gas Share Gains Propel World Beating Sukuk: Islamic Finance - Bloomberg:



"Dana Gas PJSC (DANA)’s Islamic bond was the best-performing dollar sukuk in the world last month as the energy company’s rising stock price prompted investors to exchange their debt into shares at a profit.



The fuel producer’s $425 million convertible bond due October 2017 made 3.46 percent last month, compared with an average 0.41 percent return for all dollar-denominated sukuk, according to data compiled by Bloomberg. The share conversion price is 75 fils, and Dana Gas gained 4.9 percent in April to 86 fils yesterday. The company received $51 million of conversion notices this year through March 15, it said last week.



“The convertible sukuk’s outperformance recently is mainly driven by the share price, less by the company’s actual performance,” Zafar Nazim, a London-based credit analyst at JPMorgan Chase & Co., said by phone yesterday. “There’s an incentive to convert and some holders have.”"



'via Blog this'