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Dubai's DP World plans bond issue to raise up to $1bn in new capital, says report

Dubai-based DP World, one of the largest port operators in the world, could look to raise $1 billion from a new bond issue, according to a report by Reuters .

The company is likely to issue long term bonds, potentially with a lifespan of ten years, Reuters said.

Banks currently involved in the deal include Citigroup, Deutsche Bank, Emirates NBD, HSBC, National Bank of Abu Dhabi and Societe Generale, the report said.

These six banks are listed as arrangers and dealers in DP World's $5 billion global medium term note programme.

"DP World has always managed its cash very well, and with rates where they are and with the way they are expanding, it shouldn't be surprising they are choosing to come to the market now," a Dubai-based banker told Gulf Daily News.

DP World has more than 65 marine terminals across six continents, according to its website, with new developments underway in India, Africa, Europe and the Middle East.

The company's core business is container handling, generating three-quarters of its revenue. In 2014, DP World handled 60 million TEU (twenty-foot equivalent container units), and the company expects this to rise to more than 100m TEU by 2020.

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