Ports operator DP World plans to raise as much as $3 billion by selling two benchmark-size bonds, one of which will have a maturity of up to 30 years, a banker who attended the company’s presentation has said, according to a Reuters report.

The world’s third-largest container-port operator will use the cash to refinance debt, the banker, who asked not to be named, said after a presentation in Abu Dhabi.
Banks managing the sale said recently that Dubai government-owned DP World would sell a 10-year dollar Islamic bond and a long-term conventional dollar bond.
“The other bond will be of a benchmark size and could be between 20 years to 30 years,” the banker said, adding details were yet to be finalised.
“They have long-term commitments and so have to raise long-term funds,” he said.
DP World had debt of $5.72 billion at December 31, according to a prospectus given to investors and obtained by Reuters.
The company, which bought British rival P&O last year, made presentations to investors in Dubai.
The company conducted road shows in the US and London.
DP World plans to develop container-port operations in 12 countries including France and Peru, and expand facilities in nine more by the end of 2011, according to the prospectus.
The new developments will add container-handling capacity of 13.4 million teu per year while expansion of existing facilities will increase capacity by 8.9 million teu per year, it said in the prospectus.
Capacity at the end of last year was 48.6 million teu. DP World still needs government approval for three of the new projects, it said, without being more specific.
Profit last year fell 10.6 per cent to $216.9 million from $242.5 million in 2005, according to the prospectus. Revenue from operations was $3.49 billion.
In its presentation to investors, DP World said global container traffic may grow by 9.1 per cent per year until 2011.
Moody’s Investors Service gave the company an A1 rating, its fifth-highest, while Standard & Poor’s assigned the operator an A+ rating, also its fifth-highest.
The Islamic dollar bond will be managed by Barclays, Citigroup, Deutsche Bank and Dubai Islamic Bank while the long-term dollar bond will be managed by Barclays, Citigroup, Deutsche Bank and Lehman Brothers.