Dewa refinances $2.2 billion Islamic loan

Dubai Electricity & Water Authority (Dewa) is looking to refinance a $2.2 billion (Dh8bn) Islamic loan which was signed in April 2008, banking sources said yesterday.

The new deal will have three-year maturity and will carry an irrevocable payment guarantee from the Government of Dubai.

The loan, which is being arranged by Royal Bank of Scotland, Dubai Islamic Bank and Standard Chartered, is structured as an Ijara, or lease agreement. Existing lenders to the original 2008 Ijara deal have been asked to provide indicative pricing and fees to roll their commitments.

A source said responses are due by the middle of February. The 2008 deal had a 364-day maturity, paid a profit margin of 30 basis points and also carried a government guarantee.

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