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Dana Gas Set to Finish Debt Accord as Egypt, Iraq Make Payments

March 31 (Bloomberg) -- Dana Gas PJSC said it expects to complete refinancing of Islamic bonds next quarter as the United Arab Emirates fuel producer receives payments from operations in Egypt and Iraq.

The Sharjah, U.A.E.-based company has collected $41.3 million of payments due from Egypt and $32.4 million from the Kurdistan region of Iraq so far in 2013, Dana Gas said in an e-mailed statement today. The gas producer renegotiated terms for $920 million of sukuk last year after payment delays from the two countries, linked to political instability.

“The company is confident of further progress in the collection of receivables in the near future due to its strong relationships in both countries,” Dana Gas said in the statement. The company will hold a final shareholders meeting to approve its sukuk refinancing on April 23, it said.

Payments this year follow the collection of $301 million from authorities in Egypt and Iraq’s semi-autonomous Kurdish region in 2012, the company said. Dana Gas has added two new wells in Egypt and is in talks with the Iraqi Ministry of Natural Resources to expand in Kurdistan, it said.

The fuel producer said it will also start drilling at the offshore Zora gas field in the U.A.E. in the third quarter.

The yield on Dana Gas’ notes was 8.62 percent on March 29, down 49 basis points, or 0.49 percentage point, this year, according to data compiled by Bloomberg. The yield rose as high as 11.7 percent on Oct. 30, the day before Dana Gas missed payments on its debt.

To contact the reporter on this story: Sherine El Madany in Dubai at selmadany@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net

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