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)
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