Dubai-based DP World issues Middle East’s first blue bond

DP World has launched a pioneering $100 million Blue Bond, marking the first of its kind in the Middle East and North Africa (MENA) region. This initiative aims to fund sustainable projects across marine transportation, port infrastructure, marine pollution control, and nature-positive water initiatives.

The Blue Bond aligns with global sustainability objectives, particularly supporting UN Sustainable Development Goals (SDG) 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation).

The issuance also addresses the growing investor demand for transparent and sustainable blue assets, reflecting DP World's commitment to driving a resilient and sustainable logistics sector.

A regional milestone in sustainable financing

This launch represents the first corporate Blue Bond not only in MENA but also across Central and Eastern Europe, the Middle East, and North Africa. With a 5-year maturity, the bond was priced at a spread of 99.6 basis points above US Treasuries and carries a 5.25% coupon rate, marking DP World’s tightest spread in its bond and sukuk market history.

T. Rowe Price Associates, Inc., a leading investment management firm, served as the primary investor. Citigroup advised on the transaction, which adheres to DP World’s updated Sustainable Finance Framework, aligning with international guidelines for blue finance.

Supporting a sustainable blue economy

The Blue Bond reinforces DP World’s Ocean Strategy, which integrates global trade and environmental stewardship. This strategy focuses on advancing climate and ocean-related initiatives in line with the Paris Climate Agreement and the Kunming-Montreal Global Biodiversity Framework Goals.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, emphasized the company’s leadership role in promoting a sustainable blue economy. “As a responsible leader in global trade, we are committed to preserving the ocean’s ability to provide for future generations. It is our ambition to lead our industry towards a sustainable blue economy as we work with our partners to remove barriers to comprehensive climate and ocean action. This Blue Bond will lay the foundation for the years to come.”

Rob Sharps, Chairman and CEO of T. Rowe Price Associates, Inc., highlighted the significance of this issuance, calling it “an innovative transaction” that mobilizes capital toward SDG 14, the most underfunded of the sustainable development goals.

Transformative projects

The Blue Bond will fund several impactful initiatives, including:

• Sustainable Marine Transportation: Investing in alternative fuels and technologies to reduce emissions and marine pollution.
• Sustainable Port Development: Enhancing port infrastructure to minimize environmental impact, noise, and air pollution.
• Marine Ecosystem Conservation: Expanding projects to restore marine ecosystems and boost biodiversity.
• Marine Pollution Management: Tackling waste and improving water quality in coastal areas.

A track record of green financing

This Blue Bond follows DP World’s earlier achievements in green financing. In 2023, the company issued a Green Sukuk, raising $1.5 billion for eligible green projects. The initiative contributed to avoiding over 177 million kilograms of CO2 emissions, generating 866,686 kWh of renewable energy, and saving significant amounts of energy.

Philip Brown, Global Head of Sustainable Debt Capital Markets at Citigroup, praised DP World’s leadership, stating, “This inaugural Blue Bond sets an important benchmark for future sustainable financing initiatives.”

With this innovative issuance, DP World continues to pave the way for sustainable business practices in the maritime and logistics sectors, addressing critical environmental challenges while driving economic growth.