(MENAFN- Khaleej Times) Dubai Electricity and Water Authority, or Dewa, has picked banks to arrange a benchmark-sized Islamic bond, or sukuk, two banking sources told Reuters on Thursday.
The state-owned utility has picked Standard Chartered, Citigroup, RBS and local lenders Emirates NBD, Dubai Islamic Bank and Abu Dhabi Islamic Bank, the sources said. Benchmark bonds are typically at least $500 million in size. The sources declined to be identified as details of the mandate are not yet public.
A Dewa official declined to comment. Dewa, one of the strongest credits in the emirate, plans to issue up to $1 billion of sukuk in the first quarter and use the proceeds to refinance existing debt and invest in its projects, Chief Executive Saeed Mohammed Al Tayer said in January.
The potential sale will follow a successful $1.25 billion sovereign bond offering by Dubai government last week which took advantage of a gradual recovery in the economy and increased investor appetite for emerging market debt.
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