UAE energy group Dana Gas said it had appointed an international firm to advise on its $920 million convertible sukuk maturing in October, adding it would continue to meet its obligations. Dana Gas, whose share price has been battered by concerns about how it will deal with the sukuk, said on Tuesday it would update the market with its plans in due course.
"We look forward to updating the market further when we announce our preliminary financial results on January 31," chief executive Ahmed Al-Arbeed said. Chavan Bhogaita, head of the markets strategy unit at National Bank of Abu Dhabi, said: "While today's statement from the company is certainly a welcome change to the radio silence that prevailed recently, holders of the sukuk are unlikely to take much reassurance from it."
Its statement on Tuesday came almost two weeks after a January 4 board meeting which included financing options on its agenda, following which the company only issued a brief note saying the board had met.
"Investors were expecting to hear (after the meeting) how Dana will deal with its 2012 maturity but nothing came out of the meeting and that uncertainty has seen the sudden and pronounced drop in the bond," said Thomas Christie, fixed income trader at Rasmala Investment Bank.