Somaliland:DP World Raises USD 1.2 Bn, Agrees to Develop Berbera Port

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Image Courtesy: DP World

Dubai-headquartered port and terminal operator DP World has raised USD 1.2 billion in a new 7-year sukuk set to be listed on the Middle East’s international financial exchange NASDAQ Dubai.

The issue received strong investor interest and was 2x oversubscribed receiving more than USD 2 billion in bids, DP World said.

The new sukuk issue followed DP World’s refinancing of over USD 1.1 billion of the existing USD 1.5 billion 2017 sukuk. The remaining USD 387 million 2017 sukuk matures next year. The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes.

“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. Dubai is clearly the leading destination for global sukuk and a hub for those seeking attractive Islamic finance opportunities,” Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer, DP World,said.

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

In a separate announcement, DP World said that, earlier this month, it signed an agreement to invest in the multi-purpose Port of Berbera, under which a joint venture company would be set up to invest in and manage the port.

The USD 442 million project, which will be phased over time and is dependent on the volumes generated at the port, will involve the setting up of a free zone to help support the development of Berbera’s trade corridors.

“Investment in this natural deep water port will attract more shipping lines to East Africa and its modernisation will act as a catalyst for the growth of the country and the region’s economy,” bin Sulayem said.

A modernised port of Berbera will provide an additional gateway for the Horn of Africa.

SOURCE:Worldmaritimenews

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