DP World initiates $1bn convertible bond offering

Dubai: DP World has detailed its offering of $1bn senior unsecured convertible bonds due 2024 convertible into ordinary shares of DP World. The bonds will bear interest at an annual rate of 1.75% and the conversion price has been set at USD $27.1396, a 37.5% premium over the share price.

The net proceeds of the bonds will be used to take advantage of organic and inorganic growth opportunities, diversify funding sources and general corporate purposes, the terminal operator said in a release.

DP World group chief executive, Mohammed Sharaf, said: “We are taking advantage of the current low-cost financing opportunities in the convertible market to secure long-term financing so we can continue to grow our business to meet the changing needs of our customers.  The issuance also allows us to diversify our funding sources and access a broader investor base.”

It is intended that, following settlement of the Bonds, an application will be made for the bonds to be listed on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.  [15/06/14]

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