DP World raises US $1.2-billion in sukuk financing

The remaining US $387-million 2017 sukuk matures next year and was at the time the largest and first 10-year sukuk done in the region
The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes
The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes

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DP World has raised US $1.2-billion in a new seven-year sukuk set to be listed on Nasdaq Dubai, after the issue received strong investor interest and was oversubscribed over two times, receiving more than $2 billion in bids.

The new sukuk issue followed DP World's successful refinancing of over US $1.1-billion of the existing US$1.5-billion 2017 sukuk. The remaining US $387-million 2017 sukuk matures next year and was at the time the largest and first 10-year sukuk done in the region. Similarly 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 of 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 US $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 His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minster of the UAE, 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. Dubai is clearly the leading destination for global sukuk and a hub for those seeking attractive Islamic finance opportunities."

The new sukuk was priced at a fixed coupon rate of 3.91 per cent, maturing in 2023, replacing over US $1.1-billion of the 2017 6.25 per cent coupon sukuk.

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