Dana Gas announced that it fully redeemed the $309 million of the outstanding Sukuk.
The Sukuk (with an original balance of $530 million) was issued on 31 October 2017, with $221 million of repurchases taking place during the last three years.
Dr Patrick Allman-Ward, CEO of Dana Gas, said: “We are pleased to have settled all our obligations with our Sukuk holders as scheduled and have now significantly reduced our ongoing financing costs. We have a strong business model and substantial growth potential from our asset base which includes, (once the previously announced sale of our Egyptian assets completes), two world-class fields in the KRI and a highly prospective offshore block in Egypt.”
Dana Gas had said in October that it now currently has a $90 million credit facility at the corporate level. Financing costs have been significantly reduced thereby increasing future profitability. Run-rate Sukuk profit payments at the time of issue of the 2017 Sukuk were $21.2 million per annum given the 4 per cent annual profit rate.