The yield on Dana Gas PJSC’s Islamic bonds maturing in October climbed the most in two weeks ahead of a planned company board meeting tomorrow.
The rate on the $1 billion of 7.5 percent bonds advanced 165 basis points, the most since Dec. 19, to 38.6 percent at 2:37 p.m. in Dubai, according to data compiled by Bloomberg. The yield is the highest since March 2009.
“Investors are anxious ahead of this meeting,” Dubai-based Hans Zayed, head of research and strategist at Rasmala Investment Bank Ltd., said in a telephone interview today. “Dana Gas needs to do something for this refinancing sooner rather than later, because if they leave it to later it becomes a time issue.”
The Sharjah-based company said yesterday its board will discuss financing of projects in Egypt and the United Arab Emirates and also review its stake in Mol Nyrt, Hungary’s biggest oil refiner. Dana Gas’s unlisted parent company, Crescent Petroleum Co. owns 3 percent of Mol, according to data compiled by Bloomberg.
Dana Gas is in talks with several banks about refinancing sukuk, debt that complies with Islam’s ban on interest, as well as about financial strategy, and plans to list its exploration and production business on the London Stock Exchange, according to a company statement in November. A Dana Gas official couldn’t be reached for comment by phone today.