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Sun 25 Mar 2012 04:08 PM

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DP World said to raise about US$1bn 5-year credit facility

World's 3rd biggest port operator seeks money from 10-12 banks - source

DP World said to raise about US$1bn 5-year credit facility
The new facility will help meet capital expenditure as well as operating expenses,.

DP World, the world’s third- biggest port operator, is raising about US$1bn in a credit facility from a group of 10 to 12 banks, three people familiar with the matter said.

The five-year revolving credit offers a margin of 225 basis points above the London interbank offered rate, said two people, declining to be identified because the information is private.

Each bank may contribute about US$75m, and the Dubai government-controlled company and the banks may sign an agreement in two weeks, one of them said.

A spokeswoman for DP World, who didn’t wish to be identified because of company policy, declined to comment.

HSBC Holdings, Standard Chartered and Citigroup are contributing to the facility, two bankers familiar with the matter said in February. DP World has a US$3bn credit facility maturing in October, which it raised in 2007 at a margin of 45 basis points above Libor, data compiled by Bloomberg show.

The new facility will help meet capital expenditure as well as operating expenses, according to one of the people.

DP World, which operates more than 60 terminals across six continents, is expanding operations in China, India and the Middle East as it seeks to boost capacity to 100m 20-foot equivalent container units by 2020, according to its website.

The company said in December it will invest US$850m in the next three years to increase capacity at its flagship Jebel Ali port on the outskirts of Dubai.

DP World has US$10.8bn of debt and interest payments outstanding, according to data compiled by Bloomberg. The company had US$4.1bn in cash at the end of June.

DP World handled 54.7m TEUs at its ports last year compared with 49.6m TEUs a year earlier, it said Jan. 31. It forecast full-year gross profit to be “in line with expectations” after reporting a better-than-expected 36 percent rise in first-half profit to $281m.

The company’s shares are listed in Nasdaq Dubai and the London Stock Exchange.

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