Deals of the Year Awards 2018: Large EMEA Team of the Year winner

DP World’s treasury team has a deserved reputation for innovative transactions and commitment to best practice treasury

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Winner – Large EMEA Treasury Team of the Year: DP World

The award for Large EMEA Treasury Team of the Year went to DP World.

In addition to the financing deals that secured the global port operator the award for Bonds above £750m, the judges felt that the team’s broader achievements over the past year deserved recognition in their own right.

By any standards, the company has had a standout year.

For one thing, its issuance in September 2018 was notable on a number of counts. Encompassing a 10-year $1bn sukuk as well as a 12-year £350m MTN, eight-year €750m MTN and 30-year $1bn MTN, this jumbo deal was not only the region’s largest bond issue since 2014, but also DP World’s debut EUR and GBP issuances.

It was also the first triple currency transaction in the Middle East in 12 years.

 DP World’s treasury team has achieved a well-deserved reputation in the industry for embracing innovation when structuring new transactions 

Adding to the complexity of the exercise, the company simultaneously launched a tender offer on $650m worth of outstanding sukuk trust certificates for subsidiary JAFZ.

This would be impressive enough as a stand-alone exercise, but the September 2018 deal is far from the whole story. In total, DP World’s treasury team closed over $7.7bn in financing during the calendar year while working on M&A activity worth around $3bn.

Other highlights of the past year included:

• $380m 15-year structured project financing for DP World Posorja SA (Ecuador) – a challenging deal that has considerable significance to the local economy;
• $638m three-year syndicated term loan restructuring and prepayment for Drydocks World Dubai LLC;
• Achieving two consecutive credit rating upgrades over a two-year period from both Moody’s and Fitch (Baa1 and BBB+), making DP World the only investment-grade company in the sector to obtain two rating upgrades in two consecutive years by two rating agencies;
• $2bn syndicated RCF amend and extend. This groundbreaking deal was particularly notable as it was the first transaction in the region – and, indeed, the global ports sector – to include green pricing elements. The company was supported by a total of 19 banks in this innovative financing structure, which aligned with many of the lenders’ sustainable lending principles; and
• $454m 15-year syndicated term loan restructuring for DP World Santos (Brazil), denominated in USD and BRL – another innovative deal that involved buying out the majority partner Odebrecht Transport and overcoming a number of other hurdles.

In light of these many achievements, it should come as no surprise that DP World’s treasury team has achieved a well-deserved reputation in the industry for embracing innovation when structuring new transactions – as demonstrated by the numerous nominations submitted by different parties in support of the entry.

The team is also widely recognised for its proactivity, hard work and professionalism. In the multi-tranche deal carried out in September, for example, the team was praised for being highly responsive to detailed supplementary questions asked by Nasdaq Dubai.

DP World’s treasury team is also noted for setting pricing and structural benchmarks for United Arab Emirates and Gulf Cooperation Council financings and its commitment to implementing market-leading best practices.

What the judges said

“This was a standout team that has achieved a lot of different things across many different markets. A fantastic achievement.”

About The Treasurer’s Deals of the Year Awards

The Treasurer’s Deals of the Year Awards recognise the outstanding work of treasurers, both within the treasury community and the wider business world. Through them we champion the success and achievements of treasury teams that have stood out in the market over the prior 12 months. Winning an award is a great way to strengthen your organisation’s and your treasury’s profile, bringing peer and industry acknowledgement.

This article was taken from the Deals Edition 2019 issue of The Treasurer magazine. For more great insights, log in to view the full issue or sign up for eAffiliate membership