Dubai Electricity & Water Authority, the government-run utility, sold $2 billion of senior unsecured debt yesterday in its largest dollar-denominated bond sale.
The sale was split between $1.5 billion of 10-year, 7.375 percent bonds priced at par to yield 493.2 basis points more than similar-maturity U.S. Treasuries, and $500 million of 6.375 percent notes that pay 522.1 basis points more than benchmarks, according to data compiled by Bloomberg. Emerging-market dollar bonds yield an average 245 basis points, or 2.45 percentage points, over Treasuries, according to JPMorgan Chase & Co.
The utility raised dollars two weeks after the emirate sold $1.25 billion of debt in its first issue since the Dubai World credit crisis roiled global markets almost a year ago. Corporate bond sales from the Persian Gulf region have grown following the restructuring of Dubai World last month and surging demand for higher-yielding emerging-market assets, said Alan Roch, the head of Royal Bank of Scotland Plc’s bond syndicate desk in London for Central and Eastern Europe, the Middle East and Africa.
No comments:
Post a Comment