Dubai

case studies
dubai
ecosystem
energy & utilities
solution
efficiency optimization

Dubai Electricity and Water Authority triples capacity

Citi-enabled finance deal surpasses previously tenors by a Dubai borrower and facilitates radical expansion plans

The challenge

Dubai Electricity and Water Authority (DEWA) is wholly owned by the government of Dubai. Its activities include water desalination and distribution as well as the generation and transmission of energy throughout the Emirate.

DEWA was in the process of tripling its electricity generation and water desalination capacity, and sought cost-effective external financing to achieve this goal. Global financial markets were dramatically weakened at the time, and the unprecedentedly long tenure of DEWA's loan requirements meant that a suitable lender proved hard to find.

The solution

Citi, one of DEWA's overall deal coordinators, looked for support from Export Credit Agencies (ECAs) in order to structure a long-term financing option.

A total of $1 billion was secured, supported by comprehensive guarantees from three European ECAs, with an unprecedented door-to-door tenure of 13 years.

The result

Despite the risk-averse financial climate, DEWA was able to achieve AAA or AA-rated guarantees and competitive pricing on over 95% of the finance deal, resulting in truly cost- effective long-term borrowing.

The 13-year tenure surpassed anything previously achieved by a Dubai borrower. The deal was also the first major multi-ECA financing for a quasi-sovereign for the UAE or GCC, and the largest ever approved for Dubai at the time.