DP World has weathered slower global growth since the financial crisis and has now emerged as the Arabian Gulf’s star performer in the bond market.
Buoyed by steadily improving finances and a credit-rating upgrade, Dubai-based DP World’s debt due in 2037 have handed investors a 21 per cent return this year as of Friday. It is the best performer among dollar-denominated bonds of US$1 billion and more in theGCC.
The company stands out in a region where several governments and companies have seen their credit ratings cut over the past two years as they try to adapt to the new reality of oil at about $60 a barrel. DP World, which operates about 80 terminals across more than 100 countries from China to Ecuador, is less dependent on crude prices than some regional companies and has benefited from this year’s pick-up in global growth.
DP World’s debt is “one of the few long-duration corporate bonds out of the region with a strong stand-alone credit profile”, said Usman Ahmed, a managing director of investments at Emirates NBD Asset Management. The securities provide “international investors with an opportunity to gain exposure to the profitable Jebel Ali Port and diversified asset base through a high-quality credit”,
_____________
Read more:
DP World reports 13.5% container volume hike in third quarter
DP World launches crowdfunding initiative for retrofitting scheme
DP World to buy two Dubai maritime entities for $405m
_____________
Fitch Ratings in July raised DP World’s credit rating to BBB+, or three steps above junk, its second upgrade in the past two years. The ratings firm commended the company’s stable cash flow and the flexibility generated by its expansion plan. The company is rated Baa2 by Moody’s Investors Service, the second lowest investment grade.
It’s stock, which trades on Nasdaq Dubai, has risen 35 per cent so far in 2017, on course of its best year since 2013.
Still, DP World’s expansion plan, including the purchase of sister companies Maritime World and shipyard Drydocks World via a capital injection of $225 million, could impact its credit profile. In August the company reported a 2.5 per cent decline in first-half profit to $543m while revenue climbed 10 per cent to $2.3bn.
Bond sales from the GCC climbed to a record $78.9bn this year as regional governments boosted borrowings to bridge budget deficits. Average GCC bond prices have risen 1 per cent, according to JPMorgan indexes.
DP World’s third-quarter gross container volume grew 13.5 per cent year-on-year and the company will outperform Drewry Maritime’s estimate of 5.5 per cent industry throughput growth in 2017, it said on Tuesday. The company is working on a plan to develop Jeddah, Saudi Arabia’s port into a commercial gateway to serve larger markets.
“DP World benefits from its global presence and a solid market position coupled with its strong shareholding structure,” Mr Ahmed said. “The company continues to demonstrate stable cash flow generation and conservative balance sheet management.”
UAE currency: the story behind the money in your pockets
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Company profile
Name: Fruitful Day
Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie
Based: Dubai, UAE
Founded: 2015
Number of employees: 30
Sector: F&B
Funding so far: Dh3 million
Future funding plans: None at present
Future markets: Saudi Arabia, potentially Kuwait and other GCC countries
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
