Dana Gas ’unlawful’ sukuk further underlines need for stronger Shariah governance
Dana Gas’ ongoing ‘unlawful’ sukuk debate is not a first, or even the second such case for the Islamic finance industry but the good news is that cases like these are in the process of being addressed by changes to the Shariah governance system.
UAE’s Dana Gas is an oil and gas producer that has long struggled to generate cash from receivables owed to it in Egypt and Iraq. With an upcoming $700 million sukuk maturing on Oct 31, it is seeking to restructure the terms of its obligations to lower its costs, reduce the effect on shareholders and push out the maturity date.
This is not the first time Dana Gas is restructuring a sukuk, having been through the same process in 2013 for much the same reasons. During that time it refinanced its maturing sukuk privately with the sukuk holders.
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Blake Goud