DP World hires banks for perpetual Islamic bonds - document


By Yousef Saba

DUBAI, June 22 (Reuters) - Port operator DP World DPW.DI has hired a group of banks for a potential sale of perpetual U.S. dollar-denominated sukuk, a document showed on Monday.

The Dubai-based company, which operates ports around the world from Hong Kong to Buenos Aires, would use the proceeds for general corporate purposes, including refinancing, the document from one of the banks showed.

Citi, Deutsche Bank and JPMorgan will arrange investor calls in Asia, the Middle East and Europe on Monday, to be followed, subject to market conditions, by the issuance of perpetual U.S. dollar-denominated Islamic bonds non-callable for 5-1/2 years.

Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Crédit Agricole, Samba Financial Group, Scotiabank and Standard Chartered Bank are also working on the deal.

DP World, rated Baa3 by Moody's and BBB- by Fitch, is also considering issuing perpetual euro-denominated bonds with a six-year non-call period, according to the document.

Perpetual bonds are similar to an equity instrument in that they have no maturity date.

DP World had net debt of $12.85 billion at the end of 2019, up from $7.78 billion a year earlier, according to an investor presentation seen by Reuters.

In February, DP World returned to full state ownership in a deal that valued it at $13.9 billion and which will help the company repay some of its borrowings.

(Reporting by Yousef Saba, editing by Louise Heavens, Kirsten Donovan)

((Yousef.Saba@thomsonreuters.com; +971562166204))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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