Dubai - Arabstoday
Dubai Electricity & Water Authority (Dewa) bonds are generating more than twice the return compared with debt issued by Abu Dhabi National Energy Co., rewarding investors willing to bet on Dubai assets. Dollar-denominated bonds issued by Dewa, which is a government - owned utility due in 2015 have returned 9.3 per cent so far this year, compared with the 4.2 per cent return on 2014 dollar bonds sold by Abu Dhabi National, or Taqa. Dewa’s credit ratings are at least four steps lower than those of Taqa, Abu Dhabi’s top power supplier. Confidence in Dubai has improved this year as state-run companies, including holding unit Dubai World and property developer Nakheel complete debt-restructuring talks with creditors. “Investors are choosing to buy Dubai Inc. credits because they’ve seen through the Dubai World and Nakheel examples that there is tangible support for Dubai from Abu Dhabi,” Chavan Bhogaita, head of the markets strategy group at National Bank of Abu Dhabi, said in a phone interview. Dewa’s Chief Executive Officer Saeed Mohammad al-Tayer said on June 22 that the bond performance “shows trust in the company.” From / Gulf Today