The five-year loan was increased in size from $6,500 million due to oversubscription running into billions of dollars. It ended up tightly priced at 100 basis points, with the deal reverse flexed during bookbuilding. Banks were offered tickets of $400 million and $200 million. More than 40 institutions joined the transaction, with subscription well diversified throughout the world.
The funds raised will be used partly to finance the purchase of the UK's P&O, agreed in February.
They will also be used to refinance a $1,650 million bullet facility, on which Deutsche Bank also acted as financial adviser and bookrunner, taken out last year for the acquisition of US-based CSX Corporation (MEED 18:3:05).
Dubai Ports, Customs & Free Zone Corporation, DP World's parent, launched a $3,500 million sukuk in January, also to part-fund the P&O purchase and other elements of the company's international expansion.
Dubai Islamic Bank and Barclays were the lead managers (MEED 20:1:06).