DEWA puts Dubai on the map with US$1 billion Sukuk issuance (By IFN)

DEWA puts Dubai on the map with US$1 billion Sukuk issuance

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UAE: The Dubai Electricity and Water Authority (DEWA) launched its much anticipated US$1 billion Sukuk on the last day of February 2013; gaining over US$5.5 billion in subscriptions before its closing at midday. Not only does this issuance mark DEWA’s renewed foray into the global Sukuk market since its last US$2 billion issuance in October 2010, it is also the first Sukuk to be launched in the UAE after the officiating of Dubai ruler Sheikh Mohammad Rashid Al Maktoum’s Sukuk initiative just a day before. According to market players the rarity of a regional utility issuing bonds, combined with DEWA’s investment grade rating of ‘BBB’ as well as returning confidence in Dubai, has decreased yields significantly and boosted the marketability of the Islamic paper. Standard Chartered, Citigroup, The Royal Bank of Scotland, Emirates NBD, Dubai Islamic Bank and Abu Dhabi Islamic Bank were the deal’s bookrunners. On the issuer’s side, the emirate is expecting to see more activity in the near-term, with Dubai Investments already revealing plans to issue an AED1 billion (US$272.18 million) Sukuk, and government-backed Investment Corporation of Dubai (ICD) also reportedly in discussions for its debut Sukuk issuance.