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Clifford Chance advises Dana Gas PJSC on the issue of $1bn debut convertible sukuk issuance
- United Arab Emirates: Tuesday, November 27 - 2007 at 11:03
- PRESS RELEASE
The Dubai office and the London office of Clifford Chance LLP have advised Dana Gas PJSC ('Dana Gas') on the debut issue of $1bn forward start convertible sukuk certificates listed on The London Stock Exchange.
Dana Gas is the first regional private-sector natural gas company in the Middle East. Headquartered in Sharjah in the United Arab Emirates, Dana Gas has its shares listed on the ADSM.
Dana Gas currently has assets and projects in gas exploration and production, processing, transportation and marketing in several countries, and aims to play a major role in the rapidly-growing natural gas business throughout the Middle East North Africa Region across the entire gas value chain. In addition to its current projects, Dana Gas will be expanding its activities in all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals.
Structured as a Sukuk-Al-Mudarabah, the debut issuance of sukuk certificates will mature in 2012. The transaction is notable for being the first "forward starting" convertible sukuk certificates to be issued in the Middle East because the reference share price, to which an exchange premium of 10% will apply, will be set 9 months after the Closing Date. The sukuk certificates have a fixed profit rate of 7.5%.
Debashis Dey comments: "This forward start feature is a novel addition to convertible sukuk in the region and it was interesting to contrast the deal against previous convertible sukuk."
JPMorgan acted as Sole Bookrunner and Barclays Capital, Citi and JPMorgan are the Joint Lead Managers.
The Clifford Chance team advised Dana Gas on UAE law, Islamic structuring and English law and comprised Debashis Dey, Ursula Gil, Qudeer Latif, Amar Meher and Emma Clayton in Dubai, and Tim Morris and Sophy Teng in London.
The London office of Linklaters advised on English Law and acted for the Sole Bookrunner and the Joint Lead Managers and the Dubai office of Lovells advised on UAE law and Islamic structuring and acted for the Sole Bookrunner and the Joint Lead Managers. Jersey law firm Bedell Cristin provided Jersey law advice to Dana Gas.
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1.Clifford Chance's 63-lawyer Dubai office is fully integrated into the firm's worldwide network of offices and has a market leading finance practice in the Middle East. The firm celebrated its 30th anniversary in the United Arab Emirates in 2005, having opened its first office in the region in Sharjah in 1975. The firm recently won 'Middle East Law Firm of the Year' at the 2007 IFLR Middle East Awards.2.The capital markets practice comprises over 422 partners and lawyers who concentrate on securities transactions and other products sold into the capital markets. The practice is founded on a full-service US and UK securities law capability, complemented by local securities law expertise in each of the key financial centres.
The combination of local knowledge with an international perspective enables us to provide practical, integrated legal advice covering the full spectrum of global capital raising activities including public and private domestic and international offerings of traditional debt and equity securities as well as convertible and other derivative and structured securities.
Consistently ranked as the 'best legal practice for securitisation' by key commentators, the Clifford Chance International Securitisation Group is at the forefront of the securitisation markets across the world. The Group advises most of the leading market participants and provides an in-depth knowledge of complex issues relating to the securitisation of a broad spectrum of assets.
Our clients include issuers, originators, arrangers, managers, investors and other finance providers, trustees, rating agencies, monoline insurers and swap counterparties from a variety off industries including energy, transport, infrastructure projects, and real estate.
3.Clifford Chance is one of the world's leading law firms, helping clients achieve their goals by combining the highest global standards with local expertise. The firm has unrivalled scale and depth of legal resources across the three key markets of the Americas, Asia and Europe and focuses on the core areas of commercial activity: capital markets; corporate and M&A; finance and banking; real estate; tax; pensions and employment; litigation and dispute resolution. Clifford Chance has 27 offices in 20 countries and 3,800 legal advisers.
For further information about this release contact:
Melanie Carruthers on +971 4 362 0623 or Debashis Dey on +971 4 362 0624
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