Dubai's DEWA says offers for bond more than $13 bln

Dubai’s DEWA says offers for bond more than $13 bln

Orders had totalled $17 billion.

October 15, 2010 10:38 by Reuters

State-owned utility Dubai Electricity and Water Authority’s $2 billion two-tranche bond drew demand in excess of $13 billion, the company said on Friday, below the level indicated on Thursday.

Lead management sources told Reuters on Friday that orders had totalled $17 billion.

“The ultimate aggregate orderbook closed in excess of $13 billion,” DEWA [DEWATF.UL] said in a statement.

DEWA’s six and 10-year bonds are its second issue this year and follow last month’s successful offering by its owner, the Dubai government.

Dubai’s monopoly supplier of electricity and water launched a $500 million six-year tranche at a yield of 6.375 percent and a $1.5 billion 10-year tranche at 7.375 percent.

“Over 380 accounts showed interest in the six-year offering, while around 470 investors put in orders for the 10 year bond,” DEWA said in the statement.

Around 30 percent of the offering was placed with U.S. investors, 38 percent in Europe, while 16 percent each went to investors in Asia and the Middle East, the company said.

“The proceeds of the fund raising exercise are intended to support DEWA’s capital expenditure and other investment plans” it said in the statement.

(Reporting by Raissa Kasolowsky; Editing by Mike Nesbit)