DP World Raises $100 Million In Middle East’s First-Ever Blue Bond To Fund Sustainable Maritime Projects

DP World has raised $100 million through the first-ever Blue Bond issued by a company in the Middle East and North Africa (MENA) region.

The bond aims to fund sustainable projects in marine transportation, port infrastructure, marine pollution control, and nature-positive initiatives in the maritime and water sectors.

This Blue Bond will close the funding gap for the United Nations Sustainable Development Goals (SDG) 14 (Life below water) and SDG 6 (Clean water and sanitation), as well as meet the growing investor interest in blue assets.

The 5-year bond was priced with a 5.25% coupon rate and a spread of 99.6 basis points above US treasuries, marking DP World’s tightest-ever spread in the bond or sukuk market.

Investment management firm T. Rowe Price Associates, Inc. was the key investor in this issuance. The funds raised from the Blue Bond will support various sustainable projects, including:

Sustainable Marine Transportation: Research and development of alternative fuels and technologies to reduce marine pollution and carbon emissions.

Sustainable Port Development: Upgrading port infrastructure to minimise environmental impacts, including reducing noise and air pollution.

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

Marine Pollution Control: Initiatives to tackle waste and pollution in coastal and marine environments, improve water quality, and ensure equitable access to clean water.

The Blue Bond aligns with DP World’s recently launched Ocean Strategy, which focuses on environmental stewardship and the promotion of a sustainable blue economy.

The strategy also supports the Paris Climate Agreement and the Kunming-Montreal Global Biodiversity Framework Goals.

Additionally, the bond aligns with DP World’s long-standing Decarbonisation and Water Strategies.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said that the company is committed to preserving the ocean’s ability to provide resources for future generations.

He said that the Blue Bond will help lay the foundation for a more sustainable future in the maritime industry.

T. Rowe Price Associates expressed pride in partnering with DP World. Rob Sharps, CEO of T. Rowe Price, says that the Blue Bond will help mobilise capital toward SDG 14, especially as it is the most underfunded of all the SDGs.

Philip Brown, Managing Director at Citigroup, which advised on the bond, talked about the importance of this issuance in advancing the global blue economy.

The bond also follows the publication of DP World’s enhanced Sustainable Finance Framework, which follows international standards such as the Guidelines for Blue Finance from the International Finance Corporation.

Earlier this year, DP World published its Green Sukuk Impact and Allocation Report, revealing that $1.17 billion of the $1.5 billion raised in 2023 has been allocated to green projects.

These projects have contributed to avoiding over 177 million kg of CO2 emissions, saving 466,057 MJ of energy, and generating 866,686 kWh of renewable energy.

Reference: DP World

Source: Maritime Shipping News