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Dubai: The Dubai Electricity and Water Authority (Dewa) is selling $1 billion of bonds backed by customer bills as it seeks to increase power capacity, Fitch Ratings said.
Dewa's floating-rate notes due in 2036 are part of a $4 billion borrowing program and are ranked 'AA-', Fitch's fourth-highest grade, the ratings company said. Standard & Poor's rates the securities one level lower at 'A+'.
The bonds are issued through Cayman Islands-based Thor Asset Purchase, the ratings companies said, without specifying if the sale has closed.
Nasser Abbas, the utility's treasury manager, wasn't available for comment. Dubai will spend Dh50 billion ($13.6 billion) on expanding power and desalination capacity as a construction boom puts pressure on supplies, Dewa CEO Saeed Mohammad Al Tayer said last year.
The utility has said it intends to increase generating capacity to 9,500 megawatts by 2010 from about 5,000 megawatts.
Dewa borrowed $2.2 billion through a one-year Islamic loan in April from a group of 12 banks led by ABN Amro Holding, Dubai Islamic Bank and Standard Chartered.
In August, the utility sold $1 billion of floating-rate notes due in 2036.
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