Holding company for DP World to refinance debt, say banking sources
Port & Free Zone World, the holding company for Dubai-based
ports operator DP World, is raising $850m from a syndicated loan to refinance
debt, three bankers familiar with the plan said.
The five-year loan has conventional and Islamic portions and
pays a margin of 350 basis points, or 3.5 percentage points, over benchmark
rates, one of the bankers said.
The payment rises to about 375 basis points after including
fees, he said. The loans are backed by shares of DP World, the world’s fourth-biggest
port operator, the bankers said.
HSBC Holdings, Standard Chartered, Deutsche Bank and
Citigroup are managing the conventional loan, two of the three bankers said.
Dubai Islamic Bank, the United Arab Emirates’ biggest bank complying with
Sharia-compliant banking rules, is managing the Islamic portion, they said.
A spokeswoman for Dubai World, Port & Free Zone’s
parent, declined to comment. Officials at HSBC, Standard Chartered, Citigroup
and Deutsche Bank declined to comment. They didn’t wish to be identified
because of company policies.
A spokesman for Dubai Islamic Bank didn’t immediately
Port & Free Zone controls DP World and Economic Zones
World, which owns Jebel Ali Free Zone, the business park in Dubai adjoining DP
World’s flagship Jebel Ali port. The company raised an $853m and an AED51m conventional
loan in 2008 which matures in September.