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Wed 8 Apr 2009 12:59 PM

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DEWA confirms refinancing of $2.2bn loan

Total of 18 international, regional and local banks are involved in the refinancing deal.

The Dubai Electricity and Water Authority (DEWA) confirmed on Wednesday that it had refinanced a $2.2bn Islamic loan that was due to mature in April.

DEWA's managing director and CEO Saeed Mohammed Al Tayer told a press conference in Dubai that the new $2.2bn loan had been granted by 18 international, regional and local banks.

The loan had a paid margin of 300 basis points (bps) and had a three year maturity, he said.

Many of the banks had provided a written commitment to the deal more than one month in advance of the renewal date, Tayer added.

The timely response from the banks in the current economic climate was testimony to DEWA's reputation as one of the more advanced utilities organisations in the region, with a proven track record of good operational and financial preformance, he told reporters. He confirmed that the lead coordinators had been Emirates NBD, Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Bank.

The repayment schedule in the last year makes it an average tenure of 2.5 years, Tayer added.

A consortium of 12 banks had participated in the previous deal last year.

DEWA is the third Dubai government entity to tap the loan market in order to refinance existing debt.

In Febraury, Borse Dubai raised a $2.5bn loan to refinance part of a $3.4bn loan and on Sunday, Dubai Civil Aviation refinanced a $1bn Islamic loan.

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