Middle East Bonds
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Dana Gas completed a $920m sukuk restructuring with creditors this week, having defaulted on the notes in early November. The Sharjah-based company will pay down $70m in cash and issue two new $425m five year sukuk — one ordinary and one convertible — paying 9% and 7%, respectively. The previous deal’s coupon was 7.5%.
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Dana Gas has received $48m of overdue liquid fuel payments from Iraqi Kurdistan. Difficulties in obtaining money that the Sharjah-based company is owed for its operations in Kurdistan and Egypt were a key contributing factor to its failure to pay on a $920m sukuk that matured at the end of October.
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Bahrain’s Gulf International Bank underscored its improving fortunes under Saudi ownership this week with a tightly priced but well received $500m five year bond.
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Gulf International Bank looks set to make a tightly priced return to the debt capital markets next week with a benchmark-sized dollar bond. Investors in the region expect a deal with a five year maturity that could be $750m-$1bn, while pricing could begin around 175bp-200bp over mid-swaps.
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Dana Gas, the Abu Dhabi-listed firm that failed to pay a $1bn sukuk maturity in early November, hopes to announce a lock-up agreement and sign headline terms of a restructuring with creditors.
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QInvest chief executive Shahzad Shabaz, who has led the Qatari investment bank since its inception in 2007, resigned from his role on Wednesday. He will remain at the firm for a period to help the transition to his replacement, deputy CEO Tanim Hamad Al-Kawari.
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Manama, Bahrain – 22 November 2012 – The Central Bank of Bahrain (CBB) announces that the monthly issue of the Sukuk Al-Salam Islamic securities for the BD18 million issue, which carries a maturity of 91 days, has been oversubscribed by 278%.
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International legal practice Norton Rose has advised the Republic of Indonesia for a second time on another large scale international sukuk issuance. The firm advised the Republic of Indonesia on the establishment of a US$3 billion sukuk issuance program and the initial issuance of US$1 billion of sukuk under the program. The issuance, which closed on November 21, 2012, has a maturity of ten years, with periodic distributions of 3.3% per annum. The issuance was governed by English laws and was offered under Rule 144A and Regulation S of the US Securities Act to a broad range of investors based inside and outside the US.
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Manama, Bahrain –13 November 2012 – The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 264%.
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Source: Tegara Net
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