DEWA to issue $ 500 million sukuk this week

Dubai Electricity and Water Authority plans to issue an Islamic bond, or sukuk, of at least $ 500 million this week, after releasing early price guidance for the deal on Tuesday.

The emirate’s sole utility, rated BBB, is aiming to sell the dollar-denominated sukuk at a profit rate in the low 3 percent area, arranging banks said.

DEWA Chief Executive Saeed Mohammed Al-Tayer indicated last week the sukuk would be $ 1 billion and that proceeds would be used to repay debt.

As one of the strongest credits in Dubai, DEWA’s sukuk is widely expected to attract strong investor demand. The company’s representatives are meeting investors in London and Kuala Lumpur this week.

“The combination of the DEWA credit and sukuk format is one that should resonate well with investors,” said Chavan Bhogaita, head of markets strategy unit at National Bank of Abu Dhabi.

Read more: http://www.arabnews.com/economy/dewa-issue-500-million-sukuk-week