Successful DP World bond issue reaches USD3.25 billion

Global marine terminal operator DP World on Thursday 21 June, 2007 priced a USD1.75 billion conventional bond and a USD1.5 billion Islamic bond, or sukuk.Both will be listed on both the Dubai International Financial Exchange (DIFX) and the London Stock Exchange. The US$1.5 billion, 10-year sukuk attracted demand globally, including from the US, where it was the first time investors were offered the opportunity to subscribe to a UAE corporate rated sukuk. There was equally strong demand from the Middle East, with over a quarter of the total raised in the region.The US$1.75 billion 30-year bond, issued through a 12 month medium term note (MTN) programme, is the largest long dated bond to be issued in the Middle East region. It has an equally global subscriber base with over half of the subscription from the US.Sultan Ahmed Bin Sulayem, Chairman of DP World and giant holding company Dubai World, commented: "We are delighted to have exceeded our initial target of US$3bn for the bond issues. We are particularly pleased with the level of international support we have received. Both issues have attracted a truly global subscriber base, which reflects the global nature of DP World's business. It also underlines the confidence the international investment community has in Dubai and in DP World." Mohammed Sharaf, CEO DP World commented: "We value the high level of support shown to us and we are very pleased to have been recognised by the international investment community as a well performing company at the front line of world trade. Our inaugural bond issues represent the continuing development of DP World as a truly international company." Yuvraj Narayan, CFO DP World commented: "The credit strength of the company is reflected in credit ratings of A1 and A+ from Moody's and Standard & Poors respectively, and in our success in raising in excess of $3bn in the current market climate." Barclays Capital, Citi, Deutsche Bank and Lehman Brothers were Lead Managers for the 30 year bond and Barclays Capital, Citi, Deutsche Bank Dubai Islamic Bank and Lehman Brothers for the 10 year sukuk. Linklaters acted as legal adviser to the Lead Managers and Clifford Chance advised the Issuers. Source