DP World prices bond

DP World is set to raise $1bn from a senior unsecured convertible ten-year bond, the company has confirmed.

The bonds will have a coupon of 1.75%, while the conversion price has been set at $27.14, a 37.5% premium over the share price.

Net proceeds of the fundraiser will be used for growth opportunities, diversify funding sources and general corporate purposes.

DP World chairman, Sultan Ahmed Bin Sulayem, said: “The proceeds will provide us with additional financial flexibility at an extremely low interest rate.”

DP World group chief executive, Mohammed Sharaf, said: “The issuance also allows us to diversify our funding sources and access a broader investor base.”

JP Morgan Securities is acting as global coordinator, joint bookrunner and settlement agent on the bond offering.

Citigroup Global Markets, HSBC Bank and UBS are each acting as joint bookrunners on the fund raiser.

It is intended that, following settlement of the bonds, an application will be made for them to be listed on the Open Market segment of the Frankfurt Stock Exchange.