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DP World issues first blue bond in the Middle East
Logistics firm raises US$100 million to finance sustainable projects in maritime and water sectors
Tom King   27 Dec 2024

Dubai-based logistics company DP World is the first company in the Middle East to issue a blue bond, raising US$100 million to fund innovative, eco-conscious projects in the maritime and water sectors.

The five-year instrument, priced at a 5.25% coupon rate, is part of DP World’s broader Ocean Strategy, which emphasizes the integration of environmental stewardship with maritime trade, and taps into the new and growing demand for sustainable finance solutions in the region.

The blue bond spread of 99.6bp above US treasuries represents DP World’s tightest-ever spread in the bond or sukuk market, demonstrating the attractiveness of the issuance.

Sultan Ahmed bin Sulayem, DP World’s group chairman and chief executive officer, describes the initiative as a stepping stone towards a more sustainable blue economy.

“As a responsible leader in global trade, we aim to preserve the ocean’s ability to sustain future generations. This bond exemplifies our commitment to removing barriers to ocean and climate action,” he says.

Key eligible focus areas for the bond will include

By directly supporting UN Sustainable Development Goals ( SDGs ) 14 ( life below water ) and 6 ( clean water and sanitation ), the bond backs the global effort to bridge funding gaps for ocean and water-positive initiatives.

The issuance also highlights the global investor interest in sustainable finance, with T. Rowe Price Associates serving as a key investor.

“We are proud to partner with DP World on its issuance of the first corporate blue bond in the Middle East, we hope this transaction can be a model for other issuers and investors to support the blue economy,” says Rob Sharps, chairman, CEO and president of T. Rowe Price Group.

Philip Brown, managing director, global head of sustainable debt capital markets, at Citigroup, which advised on the bond, adds: “Citi is proud to have supported DP World in arranging this important inaugural blue bond issuance under the updated and pioneering sustainable finance framework.”