LOANS: Dubai's DP World seeks US$1bn loan

(RLPC) – Dubai’s DP World is in talks with banks for a US$1bn loan to replace its existing US$3bn deal that matures in October. The global ports operator is self-arranging the deal, with pricing within the 200bp bracket.

“The deal will get done and it will be well supported. A bit of price-finding will need to be done as DP World want to pay less than the banks do. But, it is a good credit and they have plenty of time before the maturity to get it done,” one London-based source said.

The five-year deal could provide a useful regional pricing benchmark after several months of muted syndicated loan activity across the Middle East.

It could also help other Middle Eastern borrowers gauge which international lenders are still keen to lend, especially Europeans grappling with US dollar availability.

Dubai World’s original US$3bn loan was arranged by Barclays, Citi, Deutsche Bank and Royal Bank of Scotland in 2007 and paid a margin of 45bp over Libor.