DP World Issues $100M Blue Bond, Becomes First in Middle East
- DP World’s $100 million Blue Bond funds projects in marine transport, port infrastructure, and ecosystem conservation.
- The bond supports UN SDG 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation).
- Priced at a 5.25% coupon rate, it highlights investor confidence in sustainable blue economy initiatives.
DP World has become the first company in the Middle East and North Africa (MENA) region to issue a Blue Bond, raising $100 million for sustainable maritime and water-focused projects. The bond aligns with DP World’s Ocean Strategy and long-standing Decarbonisation and Water Strategies, supporting global trade and environmental stewardship.
“As a responsible leader in global trade, we are committed to preserving the ocean’s ability to provide for future generations,“ said Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.
The five-year bond, priced at a 5.25% coupon rate, targets projects such as:
- Sustainable Marine Transportation: Research and development of alternative fuels to reduce maritime pollution.
- Sustainable Ports Development: Upgrading infrastructure to minimize environmental and noise impacts.
- Marine Ecosystem Conservation: Nature-based solutions for restoring marine ecosystems and enhancing biodiversity.
- Marine Pollution Management: Tackling coastal and marine waste while improving water quality.
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Investor Confidence:
Investment firm T. Rowe Price Associates served as the primary investor. “This innovative transaction mobilizes capital towards UN SDG 14 while offering attractive investment returns,” said Rob Sharps, CEO of T. Rowe Price Group. The issuance also saw Citigroup’s involvement as a financial advisor.
Sustainability Milestones:
The bond’s success builds on DP World’s recent Green Sukuk Impact and Allocation Report, where $1.17 billion of $1.5 billion raised was allocated to eligible green projects, resulting in 177 million kg of CO2 avoided and significant energy savings.
A Model for the Future:
This groundbreaking issuance sets a precedent for sustainable financing in the region, demonstrating how businesses can align profitability with environmental impact. “We hope this transaction can serve as a model for other issuers and investors to support the blue economy,” Sharps added.
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