DP World has launched a landmark US$100 million Blue Bond to fund sustainable initiatives in marine transportation, port infrastructure, pollution reduction, and water-positive projects.
This issuance, the first corporate Blue Bond from the MENA region and Central & Eastern Europe, highlights DP World’s leadership in driving sustainability within the logistics sector.
Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive of DP World, stated: “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.”
In addition, the five-year bond, offering a 5.25% coupon rate, attracted key investment from T. Rowe Price Associates, Inc.
It aligns with DP World’s Ocean, Decarbonisation, and Water Strategies, which aim to promote a Sustainable Blue Economy, support global climate goals under the Paris Agreement, and advance the Kunming-Montreal Global Biodiversity Framework.
Rob Sharps, Chairman, CEO, and President of T. Rowe Price Group, Inc., mentioned: “We are proud to partner with DP World on its issuance of the first corporate Blue Bond in the Middle East. This innovative transaction will mobilize capital towards UN SDG 14, Life Below Water while providing an opportunity for attractive investment returns. We recognize UN SDG 14 as the most underfunded of all the sustainable development goals. We hope this transaction can be a model for other issuers and investors to support the blue economy.”
By bridging the funding gap for UN SDG 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation), the bond addresses growing investor interest in sustainable blue assets.
Furthermore, the Blue Bond’s spread of 99.6 basis points above US Treasuries marks DP World’s lowest spread ever in the bond or sukuk market, highlighting the strong appeal of the issuance.
The eligible projects funded by the Blue Bond include:
- Sustainable Marine Transportation: Supporting the development and adoption of alternative fuels and technologies to reduce carbon emissions and marine pollution in the maritime sector.
- Sustainable Ports Development: Financing infrastructure upgrades aimed at reducing environmental impacts, including noise and air pollution.
- Marine Ecosystem Conservation and Restoration: Expanding Nature-Based Solutions projects to protect and restore marine ecosystems, as well as promoting innovations to enhance biodiversity.
- Marine Pollution: Tackling waste and pollution in coastal and marine environments, improving water quality, and ensuring equitable access to clean water.
This bond issuance follows DP World’s updated Sustainable Finance Framework, which aligns with international standards, including the International Finance Corporation’s Guidelines for Blue Finance and the “Bonds to Finance the Sustainable Blue Economy – A Practitioner’s Guide.”
Earlier this year, DP World released its first Green Sukuk Impact and Allocation Report. Of the US$1.5 billion raised in 2023, US$1.17 billion has been allocated to eligible green projects, which have helped avoid more than 177 million kg of CO2 emissions, save 466,057 MJ of energy, and generate 866,686 kWh of renewable energy.
