Imagine a firm acting like a strict parent, setting all the rules and watching the clock
The issue is being offered at a higher rate of 7.5 per cent instead of an earlier coupon range of 6.5 per cent, market sources said.
JP Morgan is the sole book-runner for the deal, according to Business Weekly. For the initial $1 billion issue planned in June, Citibank and Barclays were the advisers.
A spokesman of the company, however, said the size of the current issue was in fact increased from its initial amount of $750 million following strong market interest. The issue, the third largest convertible sukuk to be completed in the region, is part of Dana Gas' strategy to put in place the most efficient capital structure. Dana Gas' Dh2.06 billion IPO in late 2005 was oversubscribed 140 times collecting a total of Dh288 billion.
Neeraj Agarwal, Finance Director, said the bond is one of the most sophisticated equity-linked structures to be issued. It has a combination of features including Shariah compliant and onward-starting structures as well being the first sukuk with delayed settlement. The issue of the sukuk was approved by the company's shareholders at an extraordinary general meeting held in July.
"This is a landmark transaction that will propel the company through its next phase of growth, as well as successfully position Dana Gas in international capital markets," said Agarwal.
"We are pleased to have launched this sophisticated and innovative transaction, and are also pleased with the strong investor interest in the unique identity of Dana Gas as a regional company focused on the Middle East's rapidly growing natural gas sector."
Structured as Sukuk Al-Mudarabah, the bond will mature in 2012. The terms of the sukuk grant rights to sukuk holders to exchange them into ordinary shares of Dana Gas subject to certain conditions.
A statement from Dana Gas said the Sharjah-based company is currently active in all aspects of the natural gas business across the region, with major projects in the UAE, Egypt and most recently in the Kurdistan Region in Northern Iraq. It also has new projects under development in other countries in the Middle East.
"The company's $1.1 billion acquisition of Centurion Energy earlier this year placed Dana Gas as the sixth largest gas producer in Egypt, with further recent gas discoveries made as part of an active drilling programme.
In April, Dana Gas also concluded important agreements for gas projects with the Kurdistan Regional Government, with a first phase investment of approximately $400 million.
Imagine a firm acting like a strict parent, setting all the rules and watching the clock
Customising sessions to meet each patient's needs is essential to successful music therapy
Learners just need to bring their own goggles, swimsuit, water – and most importantly the determination to learn, and willingness to clean the beach
Omar Al Marzouqi and cyclist Safiya Al Sayegh were the flag-bearers for the UAE at the opening ceremony
For the first time in Olympic history, the opening ceremony is taking place outside the main stadium
In a social media post, the Ministry of Foreign Affairs urged its citizens to exercise necessary precautions
RM Sotheby’s 2nd auction of cars will be held later this year
The city's public transport system has many strict rules and regulations in place to ensure that everyone can have a safe and enjoyable journey