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DP World set to price benchmark sukuk

LONDON, May 24, 2016

Dubai-based ports operator DP World could price a benchmark-sized US dollar sukuk issue of seven years duration on Tuesday after it released initial price thoughts, a document from lead managers showed.

The issue, structured to be compliant with rules allowing investors in the United States to participate, is earmarked to price in the area of between 262.5 basis points and 275 bps over midswaps, according to the document.

Benchmark size is traditionally understood to mean in excess of $500 million.

The transaction will be used to fund the repurchase of up to $750 million of DP World's sukuk which is due to mature in 2017, for which a tender offer closed on Monday.

The sukuk is being arranged by Citi, Deutsche Bank, Dubai Islamic Bank, HSBC, Barclays, Emirates NBD, First Gulf Bank, JP Morgan, National Bank of Abu Dhabi and Societe Generale, according to the document. - Reuters




Tags: DP World | sukuk |

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