Iraq Rattles Bondholders as Dana Gas to Taqa Yields Rise - Bloomberg

Iraq Rattles Bondholders as Dana Gas to Taqa Yields Rise - Bloomberg:



"Bondholders in Persian Gulf energy companies with oil and gas production in Iraq are succumbing to concern that the conflict wracking the nation since June risks disrupting operations in OPEC’s second-biggest member.



Yields on the debt of Abu Dhabi National Energy Co. (TAQA) and Dana Gas PJSC, United Arab Emirates-based companies active in Iraq, have risen since June 9, a day before Islamist militants seized the country’s second-largest city, Mosul. The spread for Middle East sovereign debt to U.S. Treasuries surged last month and widened to an eight-month high relative to an emerging-market index, according to JP Morgan Chase & Co. data.



Dana Gas and the Abu Dhabi-based utility known as Taqa have so far escaped disruptions in Iraq because they operate in the country’s semi-autonomous Kurdish region, which has remained outside the main area of hostilities between government forces and an al-Qaeda offshoot called Islamic State. Militants control territory from the Syrian border in the west to Kurdish positions in the northeast and are battling efforts by the army to recapture towns it abandoned earlier to the insurgents."



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