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State-owned Abu Dhabi Ports Company (ADPC) may sell up to US$1 billion in bonds early next year to finance the Khalifa Port Industrial Zone (KPIZ) in Abu Dhabi, according to its chief financial officer. ADPC has appointed the National Bank of Abu Dhabi as a financial advisor to draw up a long-term financial strategy. Arrangers for the bond have yet to be appointed.
"One of our options is a sukuk or bond in the first quarter of 2011 of about US$1 billion," Ala Khannak told Reuters who went on to say that the ports operator is working closely with Abu Dhabi's Debt Management Office.
ADPC is developing the US$2.18 billion KPIZ project, located midway between Abu Dhabi and Dubai in Taweelah. The first phase will be operational in the fourth quarter of 2012 with an initial capacity of two million TEUs (twenty foot equivalent units) and nine million tonnes of cargo.
The KPIZ will be built over five phases and ADPC is also developing smaller ports in Abu Dhabi. Funding is yet to be finalised for the next phases but it will be made up of a mix of syndicated bank loans, bilateral facilities, export credit agency finance, Islamic finance and debt capital markets, Ala Khannak said.