Dana Gas announced that it has obtained a $ 90 million credit facility from Mashreq Bank.

The company clarified in a statement published on the Abu Dhabi Securities Exchange website that this credit facility is due within one year, at an initial interest rate of 3% per annum above the prevailing interest rate among London banks, “LIBOR” (3%), confirming that it has an option. Extending 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 on the due date.

In addition to using the cash reserves available to it, the new credit facility will enable the company to fully repay its Sukuk maturing on October 31, 2020, with a total value of $ 309 million.

In its statement, the company confirmed that it would 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 firm testimony to the strong operational and financial position of Dana Gas, despite the difficult conditions the markets are currently going through as a result of the global pandemic and the challenges and negative consequences it imposed on the economy. Global oil and gas prices.

For his part, 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 financial position and this partnership is the best evidence of Mashreq Bank’s commitment to play a pioneering role to stimulate and grow the energy sector in the region.

Source "mubasheregypt"