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DP World reveals terms of $1 billion Convertible Bond offering due 2024

June 14, 2014

On 12 June DP World Limited announced the final terms of its offering of $1 billion senior unsecured convertible bonds due 2024 convertible into ordinary shares of DP World. The Bonds will bear interest at an annual rate of 1.75 per cent and the conversion price has been set at $27.1396, a 37.5 per cent premium over the share price.

The net proceeds of the Bonds will be used to take advantage of organic and inorganic growth opportunities, diversify funding sources and general corporate purposes. DP World Chairman, Sultan Ahmed Bin Sulayem, said, "The proceeds from the convertible bond provide us with additional financial flexibility at an extremely low interest rate to take advantage of further organic or inorganic investment opportunities in order to enhance returns to shareholders over the medium term."

DP World Group Chief Executive, Mohammed Sharaf, said, "We are taking advantage of the current low-cost financing opportunities in the convertible market to secure long-term financing so we can continue to grow our business to meet the changing needs of our customers.  The issuance also allows us to diversify our funding sources and access a broader investor base."

It is intended that, following settlement of the Bonds, an application will be made for the Bonds to be listed on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange.

J.P. Morgan Securities plc is acting as Global Coordinator, Joint Bookrunner and settlement agent on the Bond offering. Citigroup Global Markets Limited, HSBC Bank plc and UBS Limited are each acting as Joint Bookrunners on the Bond offering.

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Source: CPI Financial

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