Abu Dhabi Ports eyes $1bn bond in 2011 Q1

  • Share via facebook
  • Tweet this
  • Bookmark and Share
BOND SALE: Abu Dhabi Ports Company may sell up to $1bn in bonds early next year to finance the Khalifa Port and Industrial Zone. (Getty Images)

BOND SALE: Abu Dhabi Ports Company may sell up to $1bn in bonds early next year to finance the Khalifa Port and Industrial Zone. (Getty Images)

State owned Abu Dhabi Ports Company (ADPC) may sell up to $1 billion in bonds early next year to finance the Khalifa Port & Industrial Zone (KPIZ) in Abu Dhabi, its chief financial officer said on Monday.

ADPC has appointed National Bank of Abu Dhabi as financial advisor to draw up a long term financial strategy. Arrangers for the bond have yet to be appointed.

Speaking to Reuters, Ala Khannak said: "One of our options is a sukuk or bond in the first quarter of 2011 of about $1 billion."

In a telephone interview, Khannak said the ports operator is working closely with Abu Dhabi's Debt Management Office.

Abu Dhabi, capital of the UAE, is investing billions of dollars in infrastructure, real estate and tourism to diversify its economy away from oil.

ADPC, which also manages the existing Mina port, is not immediately in need of cash.

He said: "We are comfortable with our cash flows as well as funding from banks, export credit facilities and equity from the government."

ADPC is developing the $2.18 billion KPIZ project, located midway between Abu Dhabi and Dubai in Taweelah.

The first phase will be operational in fourth quarter 2012 with initial capacity of 2 million TEUs (twenty foot equivalent units) and 9 million tonnes of cargo.

The KPIZ will be built over five phases and ADPC is also developing smaller ports in Abu Dhabi.

By 2030, when all phases of the new port are completed, its capacity will be 15 million TEUs and 35 million tonnes cargo, Mohamed al Shamsi, Port Unit Vice President of KPIZ told a conference in March.

The port would then contribute up to $22 billion of Abu Dhabi's GDP in 2030, he said.

Funding for the next phases is yet to be finalised but it will comprise a mix of syndicated bank loans, bilateral facilities, export credit agency finance, Islamic finance and debt capital markets, Khannak said.

Several state backed entities and banks from Abu Dhabi have been tapping the bonds market after banks tightened lending following the global crisis as well as the debt standstill by Dubai World. (Reuters)

Related:

Market Performance

National Bank of Abu Dhabi
14.15
0.05 0.35 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Smoke-free Dubai - the big debate

Smoke-free Dubai - the big debate

Will the emirate ever be smoke free? We spark up the conversation...

4
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew