Dubai-based logistics company DP World has issued a $100 million blue bond to fund sustainable projects covering marine transportation, port infrastructure, marine pollution and nature and water-positive initiatives. DP World said this is the first blue bond issuance from a company in the Middle East and North Africa.
The eligible projects included within the blue bond portfolio include sustainable marine transportation, sustainable ports development, marine ecosystem conservation and restoration and marine pollution. The company said the projects in the bond align with DP World’s recently launched Ocean Strategy which links global trade and environmental stewardship, supports the company’s leadership towards a sustainable blue economy and removes barriers to comprehensive climate ocean action.
“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 Chief Executive of DP World. “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.”
“We are increasingly working in regions where the ocean is being polluted, coastal biodiversity is being lost, and critical resources like water are becoming scarcer, posing significant threats to both nature and people. This issuance represents DP World’s second foray into the sustainable financing capital markets highlighting our commitment to sustainability and demonstrates our approach towards sustainable business practices.”
The 5-year Blue Bond was priced at a 5.25% coupon rate. Investment management firm, T. Rowe Price Associates was the key investor, DP World said.
“We are proud to partner with DP World on its issuance of the first corporate Blue Bond in the Middle East,” said Rob Sharps, Chairman, CEO, President of T. Rowe Price Group. “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.
The Bond follows the publication of DP World’s recently enhanced Sustainable Finance Framework, which is aligned with various international standards. The Framework takes into consideration the Guidelines for Blue Finance from the International Finance Corporate and the ‘Bonds to Finance the Sustainable Blue Economy – A Practitioner’s Guide’.
