UAE's Dana Gas pledges proceeds of Egypt sale to repay sukuk

Dana Gas plans to use the proceeds from its Egyptian assets, which the United Arab Emirates-based firm has been trying to sell, to pay down its sukuk, an Islamic bond which is due in October.

The sale of Dana’s exploration and production assets in Egypt, which are onshore in the Nile Delta apart from Block 6 which is in the Eastern Mediterranean Sea, could be complicated by the recent plunge in oil prices.

“If a sale of these assets were to go ahead the proceeds of the sale would be used to pay down the sukuk as required by the terms of the sukuk,” Dana Gas, which is listed in Abu Dhabi, said in a bourse statement on Thursday.

Dana, which also operates concessions in Iraq’s Kurdish region, recently delayed a decision on whether to sell the Egyptian assets because of the coronavirus crisis, two sources close to the talks told Reuters.