Flood of orders for Dubai bond sale

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Dubai Electricity and Water Authority, the government-owned utility, reopened the market for bond issuers in the city on Thursday, in a deal that it is hoped will rebuild market confidence following the restructuring of Dubai World.

The sale of $1bn of five-year bonds, yielding 8.5 per cent, attracted more than $11bn of orders. Dewa was able to price the deal at a lower cost than initially expected.

“What this means for the market is that, for the right name with the right structure and the right approach to the market, there is tremendous interest from fixed income investors for new issuance,” said Alan Roch, fixed income syndicate director at RBS, one of the sale managers.