DUBAI: Dubai Electricity and Water Authority (Dewa) has picked banks to arrange a benchmark-sized Islamic bond, or sukuk, two banking sources said yesterday.
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.
Dewa 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 earlier in January.
Dewa last tapped global debt markets in October 2010, when it priced a $2bn, dual-tranche conventional bond. The sukuk may price inside the sovereign given investor demand for Islamic debt and a desire to diversify portfolios, analysts and industry experts said.