Port operator DP World plans to raise at least $700 million through conventional and Islamic bond issues on Thursday, documents issued by banks involved in the deal showed.
Majority owned by the Dubai government, DP World plans to issue benchmark sukuk with a 10-year maturity. Benchmark bonds are generally meant to be over $500 million.
The Islamic paper is being marketed with an initial guidance of around 230 basis points over mid-swaps.
Barclays, Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered have been hired to arrange the issue, which is expected to be priced later on Thursday.
DP World - which as of the end of last year had $10.5 billion in existing debt - is also reopening an existing conventional bond, due in 2048. The so-called bond "tap" is expected to raise $200 million, one of the documents showed.
The initial yield guidance for the bond reopening ranges between 5% and 5.1%.
The proceeds of the sukuk will be used for general corporate purposes, the company said in an investor presentation this week, seen by Reuters.
The bond issues come after the company announced last week its plan to buy Topaz Energy and Marine, a provider of marine logistics, for around $1 billion.
(Reporting by Davide Barbuscia
