Port operator DP World is set to raise $1.3bn on Thursday through conventional and Islamic bond issues, documents issued by banks involved in the deal showed.
Majority owned by the Dubai government, DP World plans to borrow $1bn by issuing sukuk with a 10-year maturity and offering a profit rate equivalent to 195 basis points over mid-swaps.
The Islamic paper was marketed earlier on Thursday with an initial guidance of around 230 basis points over mid-swaps.
DP World – which as of the end of last year had $10.5bn in existing debt – has also reopened an existing conventional bond, due in 2048.
The size of the so-called bond “tap” has been set at $300 million, and will offer a 4.9 per cent yield, one of the documents showed.
The initial yield guidance for the bond reopening ranged between 5 per cent and 5.1 per cent.
DP World’s sukuk got orders of over $4.6bn, while demand for the bond tap topped $1.6bn.
The proceeds of the sukuk will be used for general corporate purposes, the company said in an investor presentation this week, seen by Reuters.
The bond issues come after the company announced last week its plan to buy Topaz Energy and Marine, a provider of marine logistics, for around $1bn.
Barclays, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered have been hired to arrange the sukuk issue.