Business | Shipping

DP World raises $3.25b from two bond issues

Port operator DP World has raised $3.25 billion in Islamic and conventional bond sales to refinance existing debt and fund its expansion.

  • By Shakir Husain, Staff Reporter
  • Published: 23:30 June 25, 2007
  • Gulf News

Dubai: Port operator DP World has raised $3.25 billion in Islamic and conventional bond sales to refinance existing debt and fund its expansion.

The company said it exceeded its target of $3 billion for the two bond issues.

DP World sold $1.5 billion of sukuk, maturing in 2017 and priced 1.15 percentage points over US Treasuries.

The $1.75 billion, 30-year conventional bond issue was priced 1.6 percentage points more than US Treasury rates.

More than half of the subscription for the conventional bonds, issued through a 12-month medium-term note (MTN) programme, came from the US, where the deal was managed.

Only about one-fourth of sukuk were bought by Middle Eastern investors, reflecting strong investor interest from outside the region.

"We are delighted to have exceeded our initial target of $3 billion. Both issues have attracted a truly global subscriber base," DP World chairman Sultan Ahmad Bin Sulayem said.

Both will be listed on the Dubai International Financial Exchange (DIFX) and the London Stock Exchange.

Barclays Capital, Citi, Deutsche Bank and Leh-man Brothers lead managed the two issues, helped by Dubai Islamic Bank for the sukuk.

DP World, the world's third largest marine terminal operator, manages 42 terminals in 22 countries. Its investment commitments run into billions of dollars over the next few years in several countries, including India, Turkey, Britain, Senegal, Peru and China.

Total capacity at DP World's ports was 48 million TEUs ((twenty-foot equivalent container units) in 2006 and is expected to increase to 84 million TEUs by 2016 when new terminals are built.

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