Dana Gas signs $90m credit facility with Mashreq Bank

Dana Gas signs $90m credit facility with Mashreq Bank

Dana Gas, the Middle East's leading regional private sector natural gas company, has entered into a $90 million corporate facility with Mashreq Bank, a leading financial institution in the UAE.

 

The one-year facility is priced at an initial 3% per annum margin over Libor. The credit facility can be extended for a further four years at the company's option.

 

The credit facility follows Dana Gas's announcement in the second quarter that it is exploring financial options to settle its Sukuk by the due date. In conjunction with the company's cash reserves, the facility will allow full redemption of the Sukuk at the maturity date of October 31, 2020. The outstanding total for the Sukuk is currently $309 million.

 

The Mashreq facility will be repaid when the planned sale of Dana Gas's Egyptian assets