Dubai: DP World said on Sunday the company has raised $1.2 billion (Dh4.4 billion) in a new 7-year sukuk and will be listed on Nasdaq Dubai.
More and more companies in the UAE and Gulf Cooperation Council along with the governments are taking full advantage of market conditions as US Federal Reserve prepares for a rate hike amid an economic recovery.
“As a leading enabler of global trade, we have taken advantage of attractive market conditions to successfully execute the first tender offer in the region and issue a new sukuk to drive our ongoing growth strategy,” Sultan Ahmad Bin Sulayem, Group Chairman and Chief Executive Officer, DP World said in a statement. The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes.
Strong demand
The issue received strong investor interest and was 2x oversubscribed receiving more than $2 billion in bids. The new sukuk issue followed DP World’s successful refinancing of over $1.1 billion of the existing $1.5 billion 2017 sukuk. The remaining $387m 2017 sukuk matures next year and was at the time the largest and first 10 year sukuk done in the region.
“The strong demand for our new sukuk is a clear sign of support for the economic fundamentals of Dubai and the UAE, and a positive outlook on DP World’s growth trajectory and credit ratings. Dubai is clearly the leading destination for global sukuk and a hub for those seeking attractive Islamic finance opportunities.” Sulayem said.
Nasdaq Dubai, which is the largest sukuk market globally, has over 50 listings worth $40 billion.
For the twelve months ending December 31, 2015, DP World reported a 31 per cent year-on-year increase in net profit to $883 million. The company is rated Baa3 (stable) by Moody’s and BBB- (positive) by Fitch.
