DP World on Sunday announced that the company has raised $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 $1.1 billion of the existing $1.5 billion 2017 sukuk. The remaining $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 $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."
For the twelve months ending December 31, 2015, DP World reported a 31 per cent year-on-year increase in net profit to $883 million. The company is rated Baa3 (stable) by Moody's and BBB- (positive) by Fitch. The new sukuk was priced at a fixed coupon rate of 3.91 per cent, maturing in 2023, replacing over $1.1 billion of the 2017 6.25 per cent coupon sukuk.
The new 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. The settlement of the tender, as well as the new issue, will take place on May 31, 2016.
New sukuk joint lead managers and bookrunners included: Citigroup Global Markets, Dubai Islamic Bank, Deutsche Bank, London Branch, HSBC Bank, Barclays Bank, Emirates NBD, First Gulf Bank, J.P. Morgan Securities, National Bank of Abu Dhabi, and Société Générale. New sukuk co-managers included: Noor Bank, Samba Financial Group, and Union National Bank.
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