MIDEAST DEBT-Sukuk documents seek to reassure investors after Dana Gas scare:
"Issuers of Islamic bonds are changing the language in documentation for new issues to reassure investors after a United Arab Emirates company refused to redeem $700 million of maturing sukuk. In June, Dana Gas said it would not repay sukuk maturing in October because changes in the interpretation of Islamic finance during recent years had made the bonds “unlawful” in the UAE. Dana argues that its case, which involves a specific sukuk structure known as mudaraba, has no implication for the broad sukuk market. But its announcement worried many investors because of the risk that other Islamic bond issuers could use the same kind of argument to justify not paying debt."
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