DPW still confident

Chairman Sultan Ahmad Bin Sulayem said: “The only valid bid for P&O is from DP World.

Singapore’s PSA has made nothing more than an approach, and it is an approach with conditions.” He added: “We are strongly committed to our deal with P&O, which is the only offer that has been accepted by the board, and we are confident it is going to be successful.

Meanwhile, the US$2.8bn Islamic bond issued by Ports, Customs and Free Zone Corporation (PCFC) was oversubscribed by at least 50%, according to a lead manager. The PCFC is the holding company of DP World, which needs additional capital to fund its ambitious expansion plans. The bond issue, which is the largest of its kind, is also the first convertible Islamic bond to be issued. Lead arrangers were Dubai Islamic Bank and Barclays Capital, who note that the majority of those acquiring bonds have been international institutional investors. The bond is expected to have an annual yield of between 7.25 and 8.25% if shares are eventually offered to the public, although if no IPO takes place then the bond could generate an annual return of 10%.