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Wednesday, 14 April 2010

DEWA to pay over 8 pct for 5-yr bond

State-owned utility Dubai Electricity and Water Authority (DEWA) could pay 8.5 percent for its five-year bond, bankers on the deal said on Wednesday, the high price reflecting how investors perceive the emirate's credit risk.

Dubai's only utility will wrap up its investor roadshows in Boston on Wednesday, after meetings in the Middle East, Asia and Europe earlier in April, as a result of which more details of the issue have emerged.

The five-year issue will be a 144a transaction, open to U.S. institutional investors, and is expected to price this week. Bankers say the utility will settle at raising about $1 billion.