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DEWA considers listing US$1bn bond

DEWA ice-breaking April issuance could test the waters further.

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DEWA boss Al-Tayer is considering to list the recently issued DEWA bond.
DEWA boss Al-Tayer is considering to list the recently issued DEWA bond.

The Dubai Electricity and Water Authority (DEWA) is considering the listing of a US$1bn, five-year bond it issued in April on the Nasdaq Dubai exchange, the al-Ittihad newspaper quoted its chief executive as saying on Saturday.

DEWA's bond was the first from Dubai since the emirate's debt troubles emerged and will pay a semi-annual coupon of 8.5 percent, DEWA said in April.

"DEWA is currently studying listing the bond issued in mid-April worth US$1 billion for trading on the Nasdaq Dubai," the daily newspaper Al-Ittihad reported, citing DEWA's Chief Executive Saeed Mohammed Al Tayer.

Gulf firms have had difficulties issuing debt on the international markets since the state-owned conglomerate Dubai World announced in November that it needed to delay repayment on US$26bn of debt.

The government's restructuring plan for Dubai World announced in March has assuaged some of the concerns in the markets, however, and has opened the door again for state-linked issuers.
 

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