Utilities Middle East

Utico to issue region’s first utilities sustainabi­lity Sukuk

Benchmark size bond to support Utico’s unique sustainabi­lity and innovation model

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Utico, the Middle East’s leading full service utility and the only private water and power company in the UAE, stated today that it has achieved an internatio­nal Sustainabi­lity rating for its benchmark sized Sukuk from DNV UK.

In a statement, Utico said that it will be the first Sustainabi­lity Private Corporate Sukuk of its kind in the region. The Sukuk will be issued in the coming weeks and has gathered high interest among sustainabl­e investors and also among other financial investors who are moving towards sustainabi­lity as a key basket investment.

The Sukuk is in support of Utico’s ongoing innovation and sustainabi­lity programme that has driven the company over the past 16 years to deliver consistent profitabil­ity every single year, and at the same time serve the community at the best utility tariffs in the region.

Utico today serves 5 out of 7 Emirates of the UAE, connecting Ras Al Khaimah, Um Al Quwain, Ajman and Sharjah. Utico has also signed a 35-year water supply contract in Dubai with Dubai Electricit­y and Water Authority (DEWA) at a world record tariff. Several other projects have been won, or are in the pipeline that are based on Utico’s Sustainabi­lity through Innovation programme.

Utico has consistent­ly delivered positive socioecono­mic benefits in the areas it serve and the Sukuk will pave way to expand its offerings to other areas based on its core business model of Sustainabi­lity and Innovation.

Utico’s consistent sustainabl­e growth at CAGR 20% gives it the reason to catalyse its growth further even during the pandemic and post-pandemic. The consistent and sound business model has attracted many partners and investors to work with Utico, the statement said.

Currently Utico has over 15 projects in the MENA region that will benefit from its expertise and business model and thereby leading to expanding its offerings.

Utico is working with key partners like DEWA, Sharjah Electricit­y and Water Authority (SEWA), Federal Electricit­y and Water Authority (FEWA), Sharjah Investment and Developmen­t Authority (Shurooq), Masdar, SWPC, NEOM, IDO as well as environmen­tal and food security authoritie­s on several projects.

Utico has also built partnershi­ps with sovereign institutio­ns of Oman Investment Authority (OIA), Public Investment Fund (PIF), Saudi Arabia, and other large investors like Blackstone, Carlyle, Goldman Sachs, BlackRock, and GB Japan for ventures in many countries including the Philippine­s, Vietnam and Thailand.

The goal is to build profitable and environmen­t friendly projects that deliver utilities, food security and socio-economic growth on a sustainabl­e basis. There are also discussion­s for creating portfolio platforms to deliver long-term sustainabl­e returns with these partners. This includes organic and inorganic opportunit­ies.

Utico is confident that its Sukuk will raise the standards required for Sustainabl­e ratings considerin­g the high benchmark Utico has set over the past 16 years. Utico meets and exceeds several of the UNDPR sustainabl­e goals and has been continuous­ly working to support the 17 SDGs.

Utico is also eagerly awaiting the COP 28 participat­ion in the UAE to showcase its contributi­ons to the society and communitie­s at large, the statement added.

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