Dubai Electricity and Water Authority (DEWA) has listed its planned $1 billion sukuk on Nasdaq Dubai. The sukuk has raised more than expected, with WAM claiming regional and global investors had reacted positively, leading to an increase in the value o…
Dubai Electricity & Water Authority has given initial profit guidance of low 3% on its prospective five year benchmark sukuk. The dollar denominated ijara (asset leasing) deal, which could be as large as $1bn, is set to be priced this week.
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Dubai Electricity and Water Authority plans to issue sukuk of at least US$500m this week, after releasing early price guidance for the deal on Tuesday. DEWA is aiming to sell the dollar-denominated sukuk at a profit rate in the low 3 percent area. The…
Dubai property developer Nakheel’s trade creditors, unpaid for months, will be offered a hefty 10 percent return, a starting point for negotiations with trade creditors of the company, on a planned Islamic bond as Dubai tries to unblock a cycle of stalled bill payments to kick start its economy.
Dubai unveiled a $9.5 billion (6.1 billion pounds) rescue plan for Nakheel’s parent, state-owned Dubai World, last month, which calls for Nakheel’s trade creditors to get repayment of 40 percent in cash and 60 percent in a tradable security.
The offer is a generous one — especially in light of Dubai World’s opening offer to bank lenders of just one percent on two new tranches of debt maturing in five and eight years — and signals the trade creditors’ dominant position in debt talks.
The government is placing a great deal of importance on trade creditors because if they do not receive cash flow, it will put pressure on construction and real estate markets, which will affect workers at the firms and hurt the overall economy, he said.
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