Bloomberg News

Dubai’s DP World Arranges Financing For London Gateway Project

October 06, 2011

Oct. 6 (Bloomberg) -- DP World Ltd., Dubai’s state- controlled port operator, has agreed on a 20-year financing with a group of international banks to fund its London Gateway deep- sea port.

The company, which said it will invest an additional $1 billion on the project over the next three years, will use an equal mix of debt and equity to finance the project and plans to draw down on the debt by mid-2012 after completing equity investments, DP World said in an investor presentation posted on its website.

DP World, the world’s fourth-largest port operator, revised its group capital expenditure for 2010-2012 to $2.7 billion including the additional London Gateway investment, it said. A further $600 million will be included in group capital expenditure for London Gateway, split between 2013 and 2014 with the majority coming in 2013, according to the presentation.

The company said on Oct. 4 that the port, on the Thames river about 25 miles (40 kilometers) east of London and adjacent to a logistics park, will begin operating by the fourth quarter of 2013 and will have capacity for 1.6 million 20-foot containers.

To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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