Government to not guarantee DEWA’s bond issue

DEWA-LOGOSaeed Mohammed Al Tayer, the Chief Executive of Dubai Electricity and Water Authority's (DEWA) said that Dubai government is not going to guarantee the proposed bond issue of $1.5 billion. This situation, according to experts, can mitigate the interests of investors in the program.

Al Tayer said that the firm has been working on projects worth 30 billion dirhams. He told media, "We have projects under execution for around 30 billion dirhams, with 80 per cent almost completed."

The firm has announced to conduct a road show by March end for the proposed bond issuance. The idea was earlier scrapped when the state-owned conglomerate Dubai World grappled in crisis that shocked entire World following its failure to meet its financial obligations.

It is currently undergoing restructuring exercise which is expected to get materialized in a short time. It is yet to be seen how the investors respond to the proposed restructuring and time would decide its impact over the economy of the country that remained under pressure due to slowdown and Dubai's crisis.