Dubai ports operator raising cash for $3bn loan maturing in October
Dubai government-owned port operator DP World has started talks with banks about raising a $1bn five-year loan deal that would be used to help refinance an existing $3bn loan that matures in October.
The company, which is arranging the deal itself, has indicated to banks that it wants pricing to be under 200 basis points above the London interbank offered rate (Libor).
DP World’s existing loan was priced at just 45 basis points above Libor and was completed in 2007, at the peak of Dubai’s economic boom.
This deal, along with plans by UAE telecoms firm Emirates Telecommunication Corporation (Etisalat) to raise a $2bn loan, is expected by bankers to give a good indication of the appetite for corporate lending in regional banks.
“Etisalat and DP World are both strong credits, but they are large deals, so it could prove to be a bit of a test for the market,” says one syndications banker in the UAE. Both loans are understood to be targeting financial close in the next few months.
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