Islamic Syariah law forbids the payment or receipt of interest. The sukuk was the first by a UAE company in the US. More than half the subscribers to the conventional bond were also from the US, the statement said. A basis point is 0.01 percentage point.
DP World raises US$3.25b from bond sale
DP World, the third-biggest container port operator, raised US$3.25 billion from the sale of conventional and Islamic bonds to refinance debt and fund expansion.DP World, owned by the government of Dubai, sold US$1.5 billion of 6.25 per cent 10-year Islamic bonds, or sukuk, at a yield of 115 basis points more than similar-maturity US Treasuries, according to data compiled by Bloomberg. The company also issued US$1.75 billion of 6.85 per cent 30-year conventional bonds at a yield premium of 160 basis points.'We have exceeded our initial target of US$3 billion for the bond issues,' Sultan Ahmed Bin Sulayem, DP World's chairman said yesterday in an e-mailed statement.Both issues attracted a 'truly global subscriber base', he said.DP World, which operates 42 terminals in 22 countries, plans to spend about US$3.5 billion over the next five years on new international projects, chief executive officer Mohammed Sharaf said in a June 7 interview. Sultan bin Sulayem said in January that the company may scrap plans for an initial share sale and sell bonds instead to avoid giving up state ownership.Barclays Capital, Citigroup Inc, Deutsche Bank AG arranged both sales helped by Dubai Islamic Bank PJSC for the sukuk and Lehman Brothers Holdings Inc for the conventional bonds.