DP World Issues $100 Million Blue Bond To Fund Sustainable Marine And Water Projects

DP World has launched a $100 million Blue Bond to support sustainable initiatives in marine transportation, port infrastructure, and marine pollution. This bond aims to bridge the funding gap for UN SDG 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation). It also seeks to increase transparency for investors interested in blue assets.

The Blue Bond aligns with DP World's Ocean Strategy, which integrates global trade with environmental stewardship. This strategy supports the company's leadership in promoting a Sustainable Blue Economy and aims to advance the Paris Climate Agreement and Kunming-Montreal Global Biodiversity Framework Goals.

Sultan Ahmed bin Sulayem, Group Chairman and CEO 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."

This issuance marks DP World's second venture into sustainable financing markets, highlighting its dedication to sustainability. The company is increasingly operating in regions where ocean pollution, biodiversity loss, and water scarcity pose significant threats.

Rob Sharps, Chairman, CEO, President of T. Rowe Price Group, commented: "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."

The bond's spread of 99.6 basis points above US treasuries is DP World's tightest ever in bond or sukuk markets, reflecting its attractiveness.

Eligible Projects

The Blue Bond portfolio includes projects such as Sustainable Marine Transportation, which focuses on alternative fuels and technologies to reduce emissions. Sustainable Ports Development aims at infrastructure upgrades to minimise environmental impacts like noise and air pollution.

Marine Ecosystem Conservation involves expanding Nature-Based Solutions projects for ecosystem restoration and biodiversity enhancement. Marine Pollution initiatives target waste management and water quality improvements in coastal areas.

Sustainable Finance Framework

The bond follows DP World's updated Sustainable Finance Framework aligned with international standards. This framework considers guidelines from bodies like the International Finance Corporate for Blue Finance.

Earlier this year, DP World released its first Green Sukuk Impact Report. Of $1.5 billion raised in 2023, $1.17 billion has been allocated to green projects that have helped avoid over 177 million kg of CO2 emissions while saving energy and generating renewable power.

Citi's Philip Brown said: "Citi is proud to have supported DP World in arranging this important inaugural Blue Bond issuance under the updated and pioneering Sustainable Finance Framework."

With inputs from WAM