DP World Pioneers MENA’s First $100 Million Blue Bond

DP World, the Dubai-based global logistics leader, has issued a $100 million Blue Bond, marking the Middle East and North Africa’s inaugural corporate Blue Bond. This five-year bond, priced at a 5.25% coupon rate, aims to fund sustainable projects in marine transportation, port infrastructure, marine pollution mitigation, and water-positive initiatives.

The primary investor in this groundbreaking issuance is T. Rowe Price Associates, Inc., a prominent investment management firm. The bond’s pricing achieved a spread of 99.6 basis points above U.S. Treasuries, representing DP World’s most competitive rate in the bond or sukuk market to date.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, emphasized the company’s commitment to environmental stewardship, stating, “As a responsible leader in global trade, we are committed to preserving the ocean’s ability to provide for future generations.” He added that the Blue Bond reflects DP World’s ambition to lead the industry toward a sustainable blue economy.

The funds raised will support various initiatives, including:

– Sustainable Marine Transportation: Investing in research, development, and procurement of alternative fuels and technologies to reduce carbon emissions and marine pollution.

– Sustainable Ports Development: Financing infrastructure upgrades to minimize environmental impacts, including noise and air pollution.

– Marine Ecosystem Conservation and Restoration: Expanding nature-based solutions to conserve and restore marine ecosystems and enhance biodiversity.

– Marine Pollution Mitigation: Implementing initiatives to tackle waste and pollution in coastal and marine environments, improving water quality, and ensuring equitable access to water.

This Blue Bond issuance aligns with DP World’s recently launched Ocean Strategy, which integrates global trade with environmental stewardship. The strategy supports the company’s leadership in promoting a sustainable blue economy and aims to advance the goals of the Paris Climate Agreement and the Kunming-Montreal Global Biodiversity Framework.

Rob Sharps, Chairman and CEO of T. Rowe Price Group, Inc., expressed pride in partnering with DP World on this initiative, noting that it mobilizes capital toward UN Sustainable Development Goal 14 (Life Below Water) while offering attractive investment returns. He highlighted that SDG 14 is among the most underfunded of all sustainable development goals and expressed hope that this transaction would serve as a model for other issuers and investors to support the blue economy.

Philip Brown, Managing Director and Global Head of Sustainable Debt Capital Markets at Citigroup, which advised on the bond, remarked, “Citi is proud to have supported DP World in arranging this important inaugural Blue Bond issuance under the updated and pioneering Sustainable Finance Framework.”

This issuance follows DP World’s earlier ventures into sustainable financing. Earlier this year, the company published its inaugural Green Sukuk Impact and Allocation Report. Of the $1.5 billion raised in 2023, $1.17 billion has been allocated to eligible green projects, contributing to the avoidance of over 177 million kilograms of CO2 emissions, saving 466,057 megajoules of energy, and generating 866,686 kilowatt-hours of renewable energy.