DP World seeks ?1bn London Gateway loan
Port operator DP World is sounding out banks for a loan backing the construction of the London Gateway, a project combining a deep sea container port with a logistics park on the Thames east of London, bankers said.
Initial talks are based on debt of about £1 billion (Dh5,8bn), split roughly into a £500 million syndicated loan with the rest to be covered by multilateral facilities, two bankers said.
Discussions are, however, at an early stage, both sources added, noting most banks have not submitted proposals to credit committees and the structure is therefore subject to changes.
Banks are expected to submit their proposals by the end of the month.
"[The sponsor] has issued some indications for the terms they think are appropriate and now banks need to think about what they think is appropriate," a project finance banker said.
The tenor of the loan is expected to be in line with typically longer maturities for project finance loans and without a mini-perm feature.
DP World is owned by Dubai World, whose real estate unit Nakheel is to refinance its debt in December.
DP World has postponed some of its capacity expansion plans, including the London Gateway, to focus on developments nearing completion. International shipping has suffered over recent months as demand for goods collapsed in the wake of the recession, but bankers expect DP World's sector leadership should inspire prospective lenders.
"The port sector is not the easiest at the moment as it's tied with UK trade... but DP World is a strong sponsor for this type of transaction, with huge experience around the world," the senior project finance specialist said.
Initial talks are based on debt of about £1 billion (Dh5,8bn), split roughly into a £500 million syndicated loan with the rest to be covered by multilateral facilities, two bankers said.
Discussions are, however, at an early stage, both sources added, noting most banks have not submitted proposals to credit committees and the structure is therefore subject to changes.
Banks are expected to submit their proposals by the end of the month.
"[The sponsor] has issued some indications for the terms they think are appropriate and now banks need to think about what they think is appropriate," a project finance banker said.
The tenor of the loan is expected to be in line with typically longer maturities for project finance loans and without a mini-perm feature.
DP World is owned by Dubai World, whose real estate unit Nakheel is to refinance its debt in December.
DP World has postponed some of its capacity expansion plans, including the London Gateway, to focus on developments nearing completion. International shipping has suffered over recent months as demand for goods collapsed in the wake of the recession, but bankers expect DP World's sector leadership should inspire prospective lenders.
"The port sector is not the easiest at the moment as it's tied with UK trade... but DP World is a strong sponsor for this type of transaction, with huge experience around the world," the senior project finance specialist said.