DP World is in talks with its four banks to increase the size of its existing US$1bn loan to US$3bn, according to Reuters. In addition, the port operator is said to want to extend the lifespan and cut the interest rate on such a loan to take advantage of investors’ renewed confidence in the Emirate.
An original five-year revolving credit facility, signed in April 2012, has already been renegotiated once before when its lifespan was extended by a year in June last year. The banks funding the original loan include Barclays, Citigroup, Deutsche Bank and HSBC.
“We undertake a regular annual review of our banking facilities as part of active financial management,” a spokesperson for DP World told Reuters. Discussions on the length of the new loan and the revised interest rate were ongoing, the source said.