Dana Gas signs $90 million credit facility with Mashreq Bank
- 15 Oct 2020
Dana Gas, a regional private sector natural gas company, announced that it has entered into a US$90 million corporate facility from Mashreq Bank. The one-year facility is priced at an initial 3 per cent per annum margin over LIBOR.
The credit facility can be extended for a further four years at the company’s option, said a Dana Gas press statement on Thursday.
The credit facility follows Dana Gas’s announcement in the second quarter that it was 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 31st October, 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 is completed.
Commenting on the announcement, Dr. Patrick Allman-Ward, CEO of Dana Gas, said, “This facility is testament to Dana Gas’s financial and operational strength despite the challenging market conditions brought about by the global health pandemic and its negative impact on the global economy and oil and gas prices.
“Dana Gas’s robust financial position will allow the facility to be fully repaid when the sale of our Egyptian assets is completed. We are delighted to have formed a new, strong partnership with Mashreq and look forward to developing the relationship further.”
WAM