x Abu Dhabi, UAEWednesday 26 July 2017

Dubai's Dewa aims for $1bn sukuk

Dubai Electricity and Water Authority is planning to issue an Islamic bond worth around $1 billion during the first quarter, its chief executive said.

Dubai Electricity and Water Authority (Dewa) is planning to issue an Islamic bond worth around $1 billion during the first quarter of 2013, its chief executive said on Tuesday.

The proceeds of the sukuk would be used to refinance existing debt and to invest in the company's projects, Saeed Mohammed Al Tayer, Dewa's managing director and chief executive, said on the sidelines of a conference in Doha.

"It will be used for both - mainly for refinance, but also for investment," he said. "We have sufficient capacity but we are also growing the network so there will be an increase, whether it is for transmission or distribution."

Mr Tayer said that conversations were taking place with "many banks" about arranging the issue but he would not reveal if lenders had been picked to complete the deal.

Dewa's head said in October that the emirate's sole utility would look to raise around Dh4.5b of debt in 2013 through sukuk, export credit agency finance and securitisation deals.

The company last tapped the bond market in October 2010 when it priced a $2bn dual-tranche bond and the improvement in Dubai's perception among investors since then, as well as a smoother global picture, will help it achieve better pricing.

 

* Reuters