Dubai: DP World Ltd., the world's third-biggest port operator, is raising about $1 billion (Dh3.67 billion) in a credit facility from a group of 10 to 12 banks, three people familiar with the matter said.
The five-year revolving credit offers a margin of 225 basis points above the London interbank offered rate (Libor), said two people, declining to be identified because the information is private.
Each bank may contribute about $75 million, and the Dubai company and the banks may sign an agreement in two weeks, one of them said.
A spokeswoman for DP World, who didn't wish to be identified because of company policy, declined to comment.
Participating banks
HSBC Holdings Plc, Standard Chartered Plc and Citigroup Inc. are contributing to the facility, two bankers familiar with the matter said in February.
DP World has a $3 billion credit facility maturing in October, which it raised in 2007 at a margin of 45 basis points above Libor, data compiled by Bloomberg show. The new facility will help meet capital expenditure as well as operating expenses, according to one of the people.
DP World, which operates more than 60 terminals across six continents, is expanding operations in China, India and the Middle East as it seeks to boost capacity to 100 million twenty-foot equivalent container units by 2020, according to its website.
The company said in December it will invest $850 million in the next three years to increase capacity at its flagship Jebel Ali port.
