UAE-based private utility to raise $500mln sukuk

The company has sounded out to several financial institutions including Citi for the sukuk issuance

  
Image used for illustrative purpose.

Image used for illustrative purpose.

Borougel/Handout via Thomson Reuters Zawya

UAE-based Utico, a private utility company, is working with banks and financial institutions to secure a $500 million sukuk.

The company is seeking a 10-year note of $500 million. It will use the money to pay off some of its debts, restructure its portfolio and position itself for organic and inorganic growth.

Utico’s CEO said that the company has sounded out to several financial institutions including Citi for the sukuk issuance.

 “The response has been positive. We intend to move quickly and ensure that we complete the process in next 3-4 months,” Richard Menezes, CEO of Utico said.

Menezes also said that raising money to increase debt is not Utico’s core focus but to ensure sustainability, improve its services and restructure itself to position for new opportunities like Dubai’s Hassyan project and some other opportunities in Oman and Saudi Arabia.

The company said in a statement that it has the lowest debt to equity gearing of 0.5 in the industry.

“Utico has made continuous profits every single year for 15 years and has an excellent asset base and low gearing. We are the only private full services utility company in the region and hence Utico’s first entry into public capital markets will be an opportune time for investors to invest in a sustainable and profitable company,” Menezes said.

Utico is part of the business conglomerate RMB Group, based in Abu Dhabi and its business spans water supply, desalination, waste water treatment solutions, power generation and transmission as well as solar.

(Writing by Gerard Aoun; editing by Seban Scaria)

( gerard.aoun@refinitiv.com )

#Energy #UAE #Sukuk #Finance

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