DEWA's six and 10 year bonds are its second issue this year and follow last month's successful offering by its owner, the Dubai government
State owned utility Dubai Electricity and Water Authority's $2 billion two tranche bond drew demand in excess of $13 billion, the company said on Friday, below the level indicated on Thursday.
Lead management sources told Reuters on Friday that orders had totalled $17 billion.
In a statement, DEWA said: "The ultimate aggregate orderbook closed in excess of $13 billion."
DEWA's six and 10 year bonds are its second issue this year and follow last month's successful offering by its owner, the Dubai government.
Dubai's monopoly supplier of electricity and water launched a $500 million six year tranche at a yield of 6.375 percent and a $1.5 billion 10 year tranche at 7.375 percent.
In the statement, DEWA said: "Over 380 accounts showed interest in the six year offering, while around 470 investors put in orders for the 10 year bond."
Around 30 percent of the offering was placed with US investors, 38 percent in Europe, while 16 percent each went to investors in Asia and the Middle East, the company said.
In the statement it said: "The proceeds of the fund raising exercise are intended to support DEWA's capital expenditure and other investment plans."
A big thanks to DEWA and the lead arrangers for jointly dragging down the whole GCC credit markets. By greedily upsizing and tightening the spreads, for sure, those who were allocated will be screaming in pain as the bonds are trading at well below offer price, and we haven't even reached the initial settlement date yet! Bravo.