Dubai’s DP World hires Citi, StanChart for new 10-year Islamic bond

Port operator DP World has hired banks to arrange a series of investor meetings ahead of a potential issue of 10-year US dollar-denominated sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed on Monday.

DP World, majority owned by the Dubai government, mandated Citi, Dubai Islamic Bank and Standard Chartered to arrange the meetings to be held in Hong Kong, Singapore and London, starting on Wednesday July 10.

The three banks, together with Barclays, Deutsche Bank, Emirates NBD Capital, First Abu Dhabi Bank, and HSBC have been mandated as joint lead managers and joint bookrunners for the sukuk offering.

DP World said last week it plans to buy Topaz Energy and Marine Limited, a provider of marine logistics to the global energy industry, for $1bn from Standard Chartered and Renaissance Services.

The document on Monday did not say if the proceeds from the planned bond transaction will be used to back the acquisition.

DP World did not immediately respond to a request for comment.

The firm, rated Baa1 by Moody’s and BBB+ by Fitch, is also considering raising additional funds through long-dated U.S. dollar-denominated conventional bonds as part of an existing $10bn bond programme, according to the document.

The planned sukuk would be issued as part of an existing $5bn certificate programme.