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Vimala Vasan

Abu Dhabi , Feb. 21

DUBAI Ports World (DPW) announced that it has mandated Barclays Capital (the investment banking division of Barclays Bank Plc) and Deutsche Bank AG (together the mandated lead arrangers and bookrunners) to arrange facilities totalling $6.5 billion , incorporating a $6.3-billion term loan and a $200-million revolving credit facility for working capital purposes to finance acquisition of UK's P&O, by Thunder FZE, the acquisition vehicle set up by DP World.

The facilities, which have a 5-year tenor, will be used to finance the acquisition and to refinance existing indebtedness.

The facilities have been fully underwritten by Barclays Bank Plc and Deutsche Bank AG, according to a statement issued by the Dubai company. The shareholders of P&O had approved the acquisition on February 13.

P&O is the UK's largest port operator with key strategic assets in the world's fastest growing markets and the acquisition of P&O is seen as an unique opportunity to complete a global ports network.

This strategic move will enhance DPW's Asian platform and provide the necessary critical mass in Australia and Europe.

Post acquisition, DPW will become one of the three largest container ports businesses worldwide.

DPW was formed by a merger of Dubai Port Authority and Dubai Ports International in September 2005 and is 100 per cent owned by the Government of the Emirate of Dubai via a Dubai Government holding entity, Ports, Customs and Free Zone Corporation.

Syndication of the facilities will commence shortly.

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