International Finance
Ports and Shipping

DP World raising $1 bn bonds to buy Topaz Energy and Marine

Citi and Standard Chartered Bank will help DP World arrange a series of investors meetings ahead of the Islamic bond issue

DP World has hired banks such as Citi, Standard Chartered and Dubai Islamic Bank to raise about bonds worth about $1 billion to acquire Topaz Energy and Marine of Oman.

The banks will help DP World arrange a series of investors meetings ahead of the issue of the 10-year US dollar-denominated sukuk or Islamic bonds. According to media reports, the meetings are scheduled to take place in Hong Kong, Singapore, and London in the month of July.

Other banks such as Barclays, Deutsche Bank, Emirates NBD Capital, First Abu Dhabi Bank, and HSBC have also been mandated as joint lead managers and bookrunners for the Islamic bond issue.

The world’s largest port operator earlier revealed its plan to acquire Topaz Energy and Marine from Oman’s Renaissance Services. The deal to acquire Topaz is expected to be closed by the year’s end. The company also plans to acquire Standard Chartered’s private equity unit for $1.1 billion.

Over the last few years, the port operator has also bought companies such as P & O Ferries and P & O Ferrymasters in Europe and Puertos y Logistica in Chile. The company also purchased an additional stake in DP World Australia. It has also invested in India and Canada through its joint ventures.

Topaz Energy and Marine’s Omani owner, Renaissance Services had been exploring an initial public offering for the business. According to media reports, DeutscheBank is advising DP World while Rothschild is advising Topaz on the terms of the acquisition.

DP World is also considering raising additional funds through the issue of its long-dated US dollar-denominated conventional bonds as part of an existing $10 billion bond programme.

The company has been rated Baa1 by Moody’s and BBB+ by Fitch Ratings.

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