Dubai port operator to repay $3bn loan due in October
Dubai-based ports operator DP world has said it will repay a $3bn loan six months ahead of its maturity and raise a new $1bn facility.
The company said in a statement that it will repay the loan, which does not mature until October, between 4 and 10 April. It added that it was in the final stages of arranging a new five-year $1bn loan and that banks had already committed funding to the deal.
Bankers involved in the transaction said the new loan would involve a group of around 12 banks and that pricing was 225 basis points above the London interbank offered rate (Libor).
Once the loan is repaid and the new deal is in place DP World’s debt will be about $4.7bn, the company said.
The news is the latest sign that Dubai-based companies are successfully dealing with debt maturities due in 2012. Jebel Ali Free Zone (Jafza) proposed a debt refinancing plan to creditors earlier in March to help it replace a $2bn sukuk (Islamic bond) that matures in November.
DP World is part of Dubai World, the debt laden government owned conglomerate that was forced into a $25bn debt restructuring at the end of 2009.
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