DEWA denies bond repayment reports

Dubai : The Dubai Electricity and Water Authority (Dewa) has denied reports that it may repay Dh7.34 billion ($2 billion) in bonds before they mature as speculation.

"There is no possibility that this is true, no one has asked us to repay earlier," Abdullah Al Hajri, executive vice president of customer services of Dewa, told Gulf News.

Reports on Wednesday said that as a result of Moody's credit downgrades of some government-owned firms, the payment of $2 billion of Dewa's debt could be accelerated.

A statement released by Saeed Mohammad Al Tayer, managing director and CEO of Dewa, stated: "None of Dewa's borrowings are in default. We have unequivocal confirmation from lenders of the uninterrupted continuation of our facilities."

Following the publication of their third quarter performance figures Dewa confirms that they are on track to end this year also on a healthy note.

"Dewa has no exposure that gives rise to concern regarding our current or future operations," Al Tayer said.

The company has said that it has paid its $2.2 billion loan which is its entire due debt this year. The company has $19 billion worth of sukuks that is due to mature in the next 15 years.

"We have already secured lenders' confirmation to continue their strategic partnership with us undisturbed," Al Tayer said.