Dubai's DP World hires banks for dollar bond issue

DP World is also considering raising additional funds through long-dated U.S. dollar-denominated conventional bonds as part of an existing $10bln bond programme, according to the document

  
Image used for illustrative purpose. Terminal tractors line up to offload their containers into a cargo ship at DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018.

Image used for illustrative purpose. Terminal tractors line up to offload their containers into a cargo ship at DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, United Arab Emirates, December 27, 2018.

REUTERS/ Hamad I Mohammed

DUBAI- Port operator DP World has hired banks to arrange a series of investor meetings ahead of a potential issue of 10-year U.S. dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed on Monday.

DP World, majority owned by the Dubai government, mandated Citi, Dubai Islamic Bank and Standard Chartered to arrange the meetings to be held in Hong Kong, Singapore and London, starting on Wednesday July 10.

The three banks, together with Barclays, Deutsche Bank, Emirates NBD Capital, First Abu Dhabi Bank, and HSBC have been mandated as joint lead managers and joint bookrunners for the sukuk offering.

DP World said last week it plans to buy Topaz Energy and Marine Limited, a provider of marine logistics to the global energy industry, for $1 billion from Standard Chartered and Renaissance Services

The document on Monday did not say if the proceeds from the planned bond transaction will be used to back the acquisition.

DP World declined to comment.

The firm, rated Baa1 by Moody's and BBB+ by Fitch, is also considering raising additional funds through long-dated U.S. dollar-denominated conventional bonds as part of an existing $10 billion bond programme, according to the document.

The planned sukuk would be issued as part of an existing $5 billion certificate programme.

(Reporting by Davide Barbuscia; Editing by Alexander Cornwell and Jan Harvey) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))


More From Islamic Finance