DEWA gets $500m sukuk issue process underwayby CW Staff on Feb 27, 2013
Dubai Electricity and Water Authority (DEWA) has issued initial price guidance for a five-year, benchmark-sized Islamic bond, or sukuk, a document from lead arrangers obtained by Reuters has revealed.
Benchmark-sized is typically understood to mean at least $500 million.
The emirate’s sole utility is aiming to sell the dollar-denominated sukuk in the low 3% area, the document said.
DEWA is meeting fixed income investors in London and Asia this week ahead of the possible sukuk sale, which is due to price this week.
Standard Chartered, Citigroup, RBS and local lenders Emirates NBD, Dubai Islamic Bank and Abu Dhabi Islamic Bank are mandated joint bookrunners on the deal.
In January, Saeed Mohammed al-Tayerl, DEWA managing director and CEO, told reporters on the sidelines of a conference in Doha that the proceeds of the sukuk would be used to refinance existing debt and to invest in the company’s projects.
“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.”
Tayer said that conversations were taking place with “many banks” about arranging the issue but he wouldn’t reveal if lenders had been picked to complete the deal.
- Construction firms 27% of new business register
- Qatar Uni to research uses for date palm waste
- MEP Awards 2015: P&T lands Mechanical Project
- MEP Awards 2015: Arabian MEP in Sustainable prize
- MEP Awards 2015: Trans Gulf wins HSE award
- Qatar prepared for UN climate change conference
- Technology key for sustainability
- DSI-Aconex eye BIM with MENA-driven agreement
- Revealed: Dubai Municipality's updated BIM mandate
- Drake & Scull reveals $80m Downtown Dubai MEP win