DEWA increases Islamic bond sale 16% to $871 million
Dubai Electricity & Water Authority, the Gulf emirate's state-run utility known as Dewa, increased its first sale of Islamic bonds in United Arab Emirates dirhams by 16 percent on investor demand for the securities.
Dewa raised its sale of five-year floating-rate Ijarah sukuk to 3.2 billion dirhams ($871 million) from 2.75 billion dirhams, data compiled by Bloomberg show. The notes pay 1.25 percentage points more than the quarterly Emirates interbank offered rate, which was last at 1.8813 percent, the data show.
Dewa hired Barclays Capital, Citigroup Inc., Dubai Islamic Bank PJSC and Emirates NBD PJSC to help it raise the sukuk, a banker familiar with the sale said May 21.
Muslim Shariah law forbids interest payments, so Ijarah sukuk are based on a leasing contract and pay a profit distribution to investors rather than interest.
/Bloomberg/
Dewa raised its sale of five-year floating-rate Ijarah sukuk to 3.2 billion dirhams ($871 million) from 2.75 billion dirhams, data compiled by Bloomberg show. The notes pay 1.25 percentage points more than the quarterly Emirates interbank offered rate, which was last at 1.8813 percent, the data show.
Dewa hired Barclays Capital, Citigroup Inc., Dubai Islamic Bank PJSC and Emirates NBD PJSC to help it raise the sukuk, a banker familiar with the sale said May 21.
Muslim Shariah law forbids interest payments, so Ijarah sukuk are based on a leasing contract and pay a profit distribution to investors rather than interest.
/Bloomberg/
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