DP World, the logistics conglomerate, has fallen is early trading as investors react coolly to news the group will repay its debt early.
The Dubai based group said today it will use existing cash resources to repay all $3bn outstanding under its revolving credit facility at the start of April, six months earlier than the debt's October maturity date.
Following the repayment between April 4 and 10, DP World will have cut down its total debt to about $4.7bn and have cash balances of approximately $1.2bn, the company said in a statement.
The news failed to excite investors. Shares in DP World, which is listed on the Nasaq Dubai, fell 0.36 per cent to $10.95 in early trading.
Aramex, the Dubai based courier service, may go to the debt market for the first time since its IPO in 2005 as it seeks financing for acquisitions.
The company, which has been expanding into Asia, Africa and Europe, would look for cash to support an acquisition costing between $50m and $100m, chief executive officer Fadi Ghandour said in an interview with Bloomberg.
Emirates NBD said its 5-year $1bn fixed rate bond, which has pays interest of 4.625 per cent, was three times oversubscribed with orders received from 205 investors. Asian demand took 19 per cent of the issue, the GCC & Mena 49 per cent whilst Europe and other areas took 32 per cent of the deal.
UAE markets opened roughly flat. The Abu Dhabi Securities Exchange was down 0.19 per cent to 2,582.88. The Dubai Financial Market General Index fell 0.21 per cent to 1,665.74.
Kuwait has appointed Mohammad Y. Al-Hashel as the central bank governor, replacing Sheikh Salem
Abdul Aziz Al-Sabah who resigned last month after 25 years in office.
Oman's central bank has approved in principle the merger of Oman International Bank SAOG's business with the Oman operations of HSBC Holdings Plc, the regulator said in a statement last night.
lmiller@thenational.ae
