DUBAI Feb 28 Dubai Electricity and Water
Authority, which plans to price an Islamic bond of at
least $500 million on Thursday, further tightened price guidance
ahead of launch due to high demand for the deal.
The state utility set final guidance at 3.0 percent to 3.1
percent, slightly tighter than previously released because of
strong interest in the five-year deal. Arranging banks said
order books hit $5.5 billion ahead of closing.
Regional traders said the paper was already trading up in
the grey market.
The sukuk, DEWA's first global debt market outing since
2010, could raise up to $1 billion, and proceeds will be used to
refinance existing maturities as well as for new projects.
At the current guidance, the sukuk should price in line with
Dubai's outstanding $600 million Islamic bond maturing 2017
, which was offering a bid yield of 3.03 percent
on Thursday morning, according to Thomson Reuters data.
This suggests the company is paying almost no premium over
the sovereign, for an extended 10-month maturity.
DEWA, rated BBB, met fixed income investors in London and
Asia this week ahead of the sukuk sale.
Standard Chartered, Citigroup, RBS
and local lenders Emirates NBD, Dubai Islamic Bank
and Abu Dhabi Islamic Bank are mandated
joint bookrunners on the deal.
(Reporting by Mala Pancholia; Writing by Rachna Uppal; Editing
by Andrew Torchia)