Dubai: The Dubai Electricity and Water Authority (Dewa) repaid the $1 billion (Dh3.67 billion) in bonds that were due for payment in the current month. The authority paid off the bonds from its own resources, and the move comes as part of the framework to achieve the vision of the UAE leadership, which is to consolidate its position as a sustainable and innovation institution on the global level.
The announcement was made by Saeed Mohammad Al Tayer, managing director and CEO of Dewa. “The bonds, listed in the financial markets in 2010, are the first of its kind following the global financial crisis. The move was very successful, and was oversubscribed by 13 times, which reflects the trust investors have in Dubai and its institutions,” he said. “The issuance of the bonds reopened the doors for other bond issuances in the region, particularly the GCC,” he added.
The current Debt/EBITDA ratio is at 1.20 times and Debt/Equity ratio is at 0.17, this results reflect Dewa’s strong and solid financials, and ability to perform better. Al Tayer said that the rates are far better than that of its counterparts from the International utility market, which in turn raises the confidence of investors and encourages them to invest in Dubai.
