DP World Sets Milestone as Middle East’s First Blue Bond Issuer

DP has made history in by being the first to issue Blue Bond in the Middle East and North Africa (MENA region) to finance sustainable projects at a value of $100 m. Many of these projects relate to marine transportation, harbour construction and development, environmental management for mitigating marine pollution and promoting nature based solutions in line with internationally accepted sustainable development agendas.

The SDGs financing gaps are targeted by the initiative, with specific focus on number 14, Life Below Water and number 6, Clean Water and Sanitation. The Blue Bond represents a vision of responsible global leadership, supported by DP World and its vision for the region’s and the logistical industry’s sustainable and sustainable development.

This five-year Blue Bond was launched at a spread of 99.6 basis points over US Treasury rates, with a coupon yield of 5.25 per cent, the best ever spread achieved by DP World in the bond or sukuk market. This issuance would not be complete without the involvement of investment management firm which was the key investor, T. Rowe Price Associates, Inc.

The Blue Bond supports DP World’s Ocean Strategy, Decarbonisation, and Water Strategies to progress global initiatives including the Paris Climate Agreement and the Kunming-Montreal Global Biodiversity Framework.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said, “As a leading international supplier of trade solutions, we remain focused on sustainable approach to marine environment. This Blue Bond is our commitment to the blue economy and for addressing climate change in entirety.”

Relevant sectors for financing under the Blue Bond framework are blue economy transportation, about green ports, marine conservation and anti-pollution. These initiatives are now included within a refreshed Sustainable Finance Framework associated with DP World that complies with international blue finance protocols.

This comes shortly after DP World’s 2023 Green Sukuk in which the firm raised $1.5 billion for green endeavours. The company has already committed to spending $1.17 billion on qualifying activities that can both significantly cut CO2 emissions and increase the generation of renewable power.