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DP World Issues $100 Million Blue Bond, Pioneering Sustainability In MENA

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DP World has issued the first corporate Blue Bond in the Middle East and North Africa (MENA) region, raising $100 million to fund sustainable projects across marine transportation, port infrastructure, and marine ecosystem conservation. The landmark issuance underscores DP World’s commitment to advancing a Sustainable Blue Economy and supporting global climate and biodiversity goals.

Driving Sustainability in the Logistics Sector

The Blue Bond is fully aligned with DP World’s Ocean Strategy, a comprehensive framework linking global trade with environmental stewardship. This strategy, along with the company’s Decarbonisation and Water Strategies, aims to advance 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 importance of the initiative:

“As a responsible leader in global trade, we are committed to preserving the ocean’s ability to provide for future generations. This Blue Bond will lay the foundation for the years to come, demonstrating our dedication to a sustainable blue economy and comprehensive climate action.”

Meeting Global Sustainable Development Goals

The issuance supports United Nations Sustainable Development Goals (SDG) 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation), addressing critical challenges like ocean pollution, coastal biodiversity loss, and water scarcity. DP World aims to close the significant funding gap for these underfunded global objectives.

Rob Sharps, CEO and President of T. Rowe Price Group, commended the initiative:

“This innovative transaction mobilizes capital towards UN SDG 14 while providing attractive investment opportunities. We hope this serves as a model for other issuers and investors to support the blue economy.”

Key Blue Bond Projects

Proceeds from the Blue Bond will finance a portfolio of eligible projects, including:

  • Sustainable Marine Transportation: Developing alternative fuels and technologies to reduce carbon emissions and marine pollution.
  • Sustainable Ports Development: Upgrading infrastructure to minimize environmental impacts such as noise and air pollution.
  • Marine Ecosystem Conservation: Expanding nature-based solutions to restore marine ecosystems and enhance biodiversity.
  • Marine Pollution Mitigation: Tackling waste and pollution in coastal areas, improving water quality, and ensuring equitable water access.

A Financial Milestone

Advised by Citigroup, the Blue Bond represents DP World’s tightest spread in the bond or sukuk market at 99.6 bps above U.S. Treasuries. Philip Brown, Global Head of Sustainable Debt Capital Markets at Citigroup, highlighted the significance of the transaction:

“Citi is proud to have supported DP World in arranging this pioneering Blue Bond issuance under the updated Sustainable Finance Framework.”

A Blueprint for Sustainability

The issuance follows the recent publication of DP World’s enhanced Sustainable Finance Framework, which aligns with international standards, including the International Finance Corporation’s Guidelines for Blue Finance. This builds on DP World’s earlier achievements, such as its $1.5 billion Green Sukuk raised in 2023, which has already financed projects that avoided over 177 million kilograms of CO2 emissions and generated significant renewable energy output.

DP World’s $100 million Blue Bond issuance marks a significant milestone in sustainable finance for the MENA region, setting a benchmark for corporate leadership in the blue economy. By aligning trade and environmental priorities, DP World is charting a course toward a more resilient and sustainable future for the global logistics sector.