Tuesday, 16 February 2010

Debt clause weighs on Dewa

Debt clause weighs on Dewa




Dubai Electricity and Water Authority (Dewa) needs to ensure that the potential acceleration of payment for its $2 billion (Dh7.34bn) securitisation does not materialise to assuage investors and credit rating agencies.

Recently, the downgrades of the ratings of Dewa's securitisation programme, Thor Asset Purchase Company, have caused a "specified event" under the transaction documents to have occurred, which would lead to the acceleration of the rated debt.

That means it would have been possible that the payment of the debt instrument originally maturing in 2036, may have been redeemed in full in a much earlier date.

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