Dubai
DP World plans to raise $1 billion from a convertible bonds sale to help finance growth opportunities and diversify its funding sources, the global ports operator said on Thursday.
The 10-year bonds, convertible into ordinary shares of DP World, will carry an annual interest rate of between 1.5% and 2% and the conversion price is expected to be set at between 35% and 40% premium over the share price, the company said in a statement posted on the Nasdaq Dubai website.
DP World was expected to finalise the bond terms later Thursday and settlement is likely by June 19. It plans to list the securities on the Frankfurt Stock Exchange.
The ports operator, which is listed in Dubai and London, has focused on fast-growing emerging markets in recent years — adding to investments in India and other big Asian markets, while selling out of operations in Hong Kong, Australia and Europe. It, however, is still active in many developed markets such as the UK. DP World in April said container volumes grew more than 10% year-on-year in the first quarter, thanks to added handling capacity and healthier global trade.
JPMorgan Securities is the global coordinator, joint bookrunner and settlement agent on the offering, while Citigroup Global Markets, HSBC and UBS are acting as joint bookrunners.