DP World Said to Hire Banks for Benchmark Dollar Sukuk Sale

DP World Said to Hire Banks for Dollar Sukuk Sale
  • Fifteen lenders mandated for issue of up to seven years
  • Company plans tender offer for existing bonds dues 2017

Dubai ports operator DP World Ltd. has selected more than a dozen banks for its sale of Islamic bonds in a deal that may be announced as early as Monday, according to two people familiar with the issue.

Fifteen lenders have been hired for the offering of dollar-denominated, benchmark-sized securities, said the people, asking not to be identified because the information is private. The maturity of the issue may be as long as seven years, they said. Proceeds from the sale will be used for a tender offer for the company’s existing sukuk due in 2017.

Shariah-compliant bond sales in the six-nation Gulf Cooperation Council have climbed 4 percent this year to $3.1 billion, according to data compiled by Bloomberg.

A benchmark-sized issue usually raises at least $500 million. No one at DP World was immediately available to comment.

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