Dubai-based ports operator DP World has set pricing on a $1bn loan it is currently trying to raise at 225 basis points above the London interbank offered rate (Libor).

The pricing has attracted a strong bank group, which sources say includes regional and international names. Lenders have been attracted by the pricing, which is slightly higher than originally indicated when the deal was launched in February.

“The pricing is at the right level so they are getting quite a lot of interest from banks,” says a source at one regional bank. “It is a strong business as well so banks are comfortable with it.” DP World is arranging the deal itself and is planning to use proceeds from the deal to refinance a $3bn loan that matures in October. It hopes to have the deal completed before the end of June, with bankers working on the deal saying a group of about 12 lenders could end up funding the $1bn loan.

The existing loan was priced at just 45 basis points above Libor and was completed in 2007, at the peak of Dubai’s economic boom. The new facility will have a tenor of five years.

DP World has said it will repay the rest of the existing facility out of its own cash.