Iraqi Gas Project Bond Prices at 10.375%
Oil and gas suppliers working on Iraqi fields should note the cost of capital behind upstream development funding.
Updated on Nov. 4, 2026 in Oil and Gas
Pearl Petroleum Company Limited, a joint venture of Dana Gas PJSC and Crescent Petroleum, placed a $500 million senior secured bond carrying a fixed annual coupon of 10.375% and maturing in November 2031. The offering was upsized from $400 million, and the bond's investor base spans operators and institutions in the Middle East and beyond.
Why it matters
The proceeds will refinance existing debt and fund further development at Iraq's Khor Mor and Chemchemal gas fields. The deal closed despite elevated global bond yields, inflation concerns and regional geopolitical uncertainty, showing that energy borrowers with sound project pipelines can still access international capital at a high fixed cost.
The $500 million placement was upsized from $400 million on investor demand running 1.7 times the issue size. The 10.375% fixed coupon runs to a November 2031 maturity.
The players
Pearl Petroleum Company Limited
A joint venture gas producer operating Iraq's Khor Mor and Chemchemal fields, owned by Dana Gas PJSC and Crescent Petroleum.
Dana Gas PJSC
A Sharjah-based regional natural gas company with upstream and midstream operations across the Middle East.
Crescent Petroleum
An Sharjah-based independent energy company with upstream oil and gas assets across the Middle East and Asia.
The details
A senior secured bond gives investors a claim on specified project assets ahead of unsecured creditors, which typically supports the issuer's ability to raise larger sums. Here the bond proceeds are directed first to repaying existing borrowings and then to ongoing development work at two Iraqi gas fields. Participation from investors in the United States, United Kingdom, Europe, the Middle East and Asia reflects a broad international base for the offering.
Timeline
Bond matures in November 2031.
Market Landscape
The placement extends the Khor Mor development financing already underway at Iraq's Kurdistan gas fields. It shows regional gas producers continuing to tap international bond markets even as global yields rise.
Operators in oil and gas services should watch whether financing costs for regional gas projects stay elevated, since a 10.375% fixed coupon signals the price of capital for this class of borrower. Suppliers and contractors tied to the Khor Mor and Chemchemal developments may see contracting activity tied to the funded work.
The takeaway
Capital remains available for energy projects with secured structures and a credible development pipeline, even in a high-yield environment. Businesses that supply upstream gas developers should track bond placements like this one as a leading indicator of project spending.
Further reading
For broader context on how producers finance upstream development, see the Oil and Gas section.
