* Citi, Credit Agricole Investment Bank, the National Bank of Abu Dhabi, Standard Chartered Bank and the Royal Bank of Scotland

Clifford Chance has been retained as issuer’s counsel in a breakthrough global notes issue from state-run utility, Dubai Electricity & Water Authority (DEWA); in the company’s largest dollar-denominated bond sale yet.

The US$2bn notes offer has been split into two parts: a US$500m 6-year contract and a US$1.5bn 10-year dual-tranched notes issue. The international transaction represents DEWA's second fund-raising in the US capital markets and the third successful issue by an entity based in Dubai since the markets re-opened after Eid in September. It is viewed as a strong indicator of international investor confidence in Dubai after the Dubai World restructuring reached completion with the consent of the international and domestic creditors.

“It is noteworthy that a Dubai company, particularly post-financial crisis, was able to go into the US- dollar market and obtain long-term bond funding.  This hopefully signals an opening up of the capital markets for Dubai government-related entities (GREs) and non-GREs in the international capital markets," Clifford Chance’s Dubai-based lead partner Debashi Dey said.

In April, DEWA placed a US$1bn bond in April, attracting an order book of US$11.5bn. That transaction was significant for Dubai and the UAE as a whole as it represented the first and only dollar benchmark offering by a Dubai corporate since 2008. 

Clifford Chance through its UAE offices and London offices advised DEWA on the issue.  A separate team at Clifford Chance has also been advising Dubai World in its restructuring.
Linklaters in Dubai advised the dealers, with support from Linklaters in London on US aspects.ALB

Other related stories:

• A&O, White & Case act on first USD bonds issue in Thailand (9 Sep 2010)
• Mibank, Melli Darsa & Co, Assegaf, Hamzah & Partners, Sidley Austin rings in on US$650m Indosat bond (20 Aug 2010)