Dewa sets price guidance for sukuk - Emirates24|7

Dewa sets price guidance for sukuk

Dubai Electricity and Water Authority (Dewa) set initial price guidance for its planned Islamic bond sale at between 100 to 125 basis points over the six-month Emirates Interbank Offered Rate, two bankers said.

The state-owned utility is returning to the market after postponing the sale of $2.5 billion (Dh9.1bn) in dollar-denominated bonds in November. Dewa is selling benchmark size bonds, bankers have said, which typically means at least $500 million.

The utility's debut sale is priced in dirhams, highlighting investor appetite for securities denominated in dollar-pegged Gulf Arab currencies, on speculation countries in the region may revalue to stave off soaring inflation.

Dewa is aiming to invest more than $19bn on raising electricity-generating capacity by 150 per cent by 2012 from 5,000MW. (Reuters)