The reason for DP World expansion is because it aims to strengthen its position as a trade enabler. DP World CEO and Managing Director Mohammed Al Muallem, told the local media that, “DP World continues to see further potential for growth in Africa and is still studying the US market for possible acquisitions.” 

Currently, the port operator runs facilities in 40 countries. In July, it acquired Topaz Energy and Marine in a deal worth $1.08 billion. Topaz Energy and Marine is a Dubai-based oil services and marine logistics company.

Since 2018, DP World has performed well in securing acquisitions in the logistics and supply chain sector. The port operator is constructing port and warehouse facilities in India. India is the UAE’s biggest trading partner. 

DP World expansion plans to open ports in Africa as part of a Indian Ocean trade expansion strategy. More recently, DP World inaugurated its Kigali Logistics Platform that will serve as a passage to Africa—by connecting Rwanda to neighbouring countries, such as Democratic Republic of Congo, Burundi, Uganda, Tanzania and Kenya. DP World’s expansion strategy is aimed at geographical spread. It is also investing $3.4 billion to enhance the UAE’s link with China for the latter’s Belt and Road Initiative. 

Muallem said that the port operator is quite satisfied with the current efforts and achievements in the sector. 

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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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