Wednesday, March 20, 2013

Dubai utility DEWA says sees no more sukuk issues before 2015


Dubai Electricity and Water Authority (DEWA) is not expecting to issue more Islamic bonds before 2015 if electricity demand growth in the Gulf Arab emirate remains steady, its chief executive said on Wednesday.

"According to cash flow, there will be no additional sukuk or (conventional) bonds (in 2013). I do not think we are going to target sukuk next year, except if (electricity consumption) growth changes to 10 percent or growth targets change," Saeed Mohammed al-Tayer said.

"We have growth of 4-5 percent and I do not think it is going to increase. We will wait to see if there is any change in whether we need any more liquidity. We have time until 2015 to think about it," he told a news conference.

In February, DEWA returned to global debt markets after an absence of more than two years with a $1 billion Islamic bond, or sukuk, which drew very strong demand. That left it some $230 million short of its full-year borrowing target.

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