DP World expects to expand its sukuk buy-back after receiving offers well above the original target from investors, the Dubai-based ports operator said on Tuesday.

The firm, one of the world's largest ports companies, conducted a tender to buy back sukuk maturing in 2017. It said last week that it could buy back up to half of the outstanding $1.5 billion of paper at a price of 105.55 percent of face value, seeking to reduce the cost of its debt.

Announcing preliminary results of the tender on Tuesday, DP World said it had received valid offers for notes worth $1.11 billion by the deadline.

The company may now decide to repurchase all the tendered paper, subject to completion of a new financing agreement, it said in a statement to the London Stock Exchange.

DP World is expected to price a new benchmark-sized sukuk issue of seven years duration on Tuesday, according to a document from lead managers, and this issue would be used to fund the buy-back. Benchmark size is traditionally understood to mean in excess of $500 million.

Deutsche Bank, HSBC, Citigroup and Dubai Islamic Bank are acting as dealer managers for the tender offer, for which the final result will be announced "as soon as reasonably practicable" with a May 31 settlement date, the bourse statement said.  - Reuters