Dubai: Utico, the Middle East’s leading full-service utility and the only private water and power company in the UAE, stated 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 is based on Utico’s Sustainability through Innovation programme.
Utico has consistently delivered positive socio-economic benefits in the areas it serves and the Sukuk will pave the 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 per cent 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 environmentally 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.