DP World Plans Billion-Dollar Expansion


DP World has announced that the company has raised US$1.2 billion in a new 7-year sukuk set to be listed on NASDAQ Dubai, the Middle East’s international financial exchange, which set to drive the port and terminal operator’s growth strategy.

The issue received strong investor interest and was twice 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 $387 million 2017 sukuk matures next year and was at the time the largest and first 10-year sukuk done in the region.

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The current tender offer is the first of its kind for the region. The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes. 

Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer, DP World said: “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. 

“We have chosen to list our new issuance on Nasdaq Dubai, the largest sukuk market globally with over 50 listings worth $40 billion. NASDAQ Dubai gives this new listing, as well as our 2020 and 2037 bonds, global visibility at home and overseas.

“Our sukuk listing fits with the vision of Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai, to position Dubai as the capital of the Islamic economy globally.

“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.”

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For the 12 months ending December 31, 2015, DP World reported a 31% year-on-year increase in net profit to $883 million. 

The new sukuk was priced at a fixed coupon rate of 3.91% maturing in 2023, replacing over $1.1bn of the 2017 6.25% coupon sukuk.  

The new sukuk will keep the dual listing on the London Stock Exchange, reflecting the same listing arrangements as the old issuance, in line with the tender offer. The settlement of the tender, as well as the new issue, will take place on 31 May 2016. 

Bin Sulayem spoke at China's One Belt, One Road Summit in Hong Kong recently where he highlighted the need for better international cross-sector connectivity.

Fact File: DP World operates multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services to technology-driven trade solutions. It has a portfolio of 77 marine and inland terminals in 40 countries across six continents with a significant presence in both high-growth and mature markets. Its aim is to be essential to the bright future of global trade, ensuring everything it does has a long-lasting positive impact on economies and society. 

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