Dana Gas has obtained a credit facility from Mashreq Bank amounting to $ 90 million.
According to the Emirates News Agency, the company clarified in a statement that this credit facility is due within one year, at an initial interest rate of 3% annually above the interest rate prevailing among London banks LIBOR / LIBOR + 3% / .. confirming that it has the option to extend this credit facility for an additional four years.
This step comes after the company announced during the second quarter of this year that it is studying the financial options available to settle its sukuk at maturity, and in addition to using the available cash reserves, the new credit facility It will enable the company to fully repay its Sukuk maturing on October 31, 2020, with a total value of $ 309 million.
the company confirmed in its statement that it will repay the credit facility provided by Mashreq Bank upon completion of plans to sell its assets in Egypt.
Dr. Patrick Alman Ward, CEO of Dana Gas, said: This credit facility is a solid testament to Dana Gas' strong operating and financial position, despite the circumstances. The difficult challenges the markets are currently experiencing as a result of the global pandemic and the challenges and negative consequences it imposed on the global economy and the prices of oil and gas.
For his part, Mr. Ahmed Abdel Aal, CEO of Mashreq Bank, said that despite the difficult circumstances and challenges imposed by the Covid-19 virus, Dana Gas has demonstrated the solidity and robustness of its center This financial partnership is a testament to Mashreq's commitment to play a pioneering role in stimulating and growing the energy sector in the region.
