Dubai's DEWA eyes $1bn sukuk in Q1 2013

State utility's CEO says plan will help to refinance existing debt, fund new investments

Saeed Mohammad Al Tayer, managing director and CEO of DEWA.

Saeed Mohammad Al Tayer, managing director and CEO of DEWA.

Dubai Electricity and Water Authority (DEWA) is targeting a $1bn Islamic bond in the first quarter of next year, it was reported on Wednesday.

The emirate’s state-owned utility is planning the move as part of a AED4.5bn ($1.23bn) issuance plan for refinancing existing debt and new investments, Saeed Mohammad Al Tayer, managing director and CEO, said in comments published by Zawya Dow Jones.

“The sukuk will be in the first quarter of next year... The majority of the amount will be sukuk, and the rest will be a mix to be issued in due time,” he was quoted as saying.

The company has a $872m bond due for repayment in June 2013.

DEWA completed its first financing - worth $1bn with a tenor of 13 years - in May 2009 with agencies from France, Germany and Italy.

DEWA issued AED7.35bn worth of bonds in October 2010. It is the sole provider of electricity and water in the emirate of Dubai, one of seven members of the UAE.

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