Dubai's DP World to repay US$3 billion loan sooner than expected
DUBAI port operator DP World has announced it will repay a US$3 billion loan six months ahead of schedule. Wednesday, 28.Mar.2012, 23:29 (GMT+3)
DUBAI port operator DP World has announced it will repay a US$3 billion loan six months ahead of schedule.
DP World, a unit of heavily indebted Dubai World, said the repayments will be made between April 4 - 10, ahead of the October maturity of the loan.
The payment will reduce DP World's total debt to approximately $4.7 billion, citing a regulatory filing the company made to Nasdaq Dubai, reported Reuters, which added that this will leave its cash balance at $1.2 billion.
This follows an earlier announcement by DP World that it would cancel $2 billion of the existing revolving credit facility and replace it with a new $1 billion five-year revolving credit facility.
"While we have no immediate plans to access the new facility, it allows us to draw down and pre-pay cash as needed, providing timely and flexible access to cash as we continue to invest in our global portfolio to deliver profitable growth," said DP World CEO Mohammed Sharaf. The $3 billion loan was arranged by Barclays, Citigroup, Deutsche Bank and Royal Bank of Scotland in 2007. The global ports operator handled a total of 54.7 million TEU in 2011, up from 49.6 million TEU in 2010.