DP World has announced that the company has raised US$1.2 billion in a new 7-year sukuk, the Arabic commonly referred to as "sharia compliant" bonds, set to be listed on NASDAQ Dubai, the Middle East’s international financial exchange. The issue received strong investor interest receiving more than US$2 billion in bids.

The new sukuk issue followed DP World’s successful refinancing of over US$1.1 billion of the existing US$1.5 billion 2017 sukuk. The remaining US$387 million 2017 sukuk matures next year and was at the time the largest and first 10 year sukuk done in the region.

The new sukuk was priced at a fixed coupon rate of 3.91% maturing in 2023, replacing over US$1.1 billion of the 2017 6.25% coupon sukuk.

The new sukuk will keep the dual listing on the London Stock Exchange reflecting the same listing arrangements as the old issuance, in line with the tender offer. The settlement of the tender, as well as the new issue, will take place on 31 May 2016.

The joint lead managers and bookrunners of the new Sukuk include the following:

• Citigroup Global Markets Limited
• Dubai Islamic Bank PJSC
• Deutsche Bank AG (London branch)
• HSBC Bank plc
• Barclays Bank PLC
• Emirates NBD PJSC
• First Gulf Bank P.J.S.C.
• J.P. Morgan Securities plc
• National Bank of Abu Dhabi P.J.S.C.
• Société Générale

While the new Sukuk co-managers are the following:

• Noor Bank PJSC 
• Samba Financial Group 
• Union National Bank PJSC

The issue attracted investment from 25 countries across the Middle East, America, Europe and Asia. The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes.

Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer DP World, said:

“As a leading enabler of global trade, we have taken advantage of attractive market conditions to successfully execute the first tender offer in the region and issue a new sukuk to drive our ongoing growth strategy. We have chosen to list our new issuance on Nasdaq Dubai, the largest sukuk market globally with over 50 listings worth $40billion. NASDAQ Dubai gives this new listing, as well as our 2020 and 2037 bonds, global visibility at home and overseas. Our sukuk listing fits with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai, to position Dubai as the Capital of the Islamic Economy globally".

“The strong demand for our new sukuk is a clear sign of support for the economic fundamentals of Dubai and the UAE, and a positive outlook on DP World’s growth trajectory and credit ratings. Dubai is clearly the leading destination for global sukuk and a hub for those seeking attractive Islamic finance opportunities.”