DP World has issued a $100 million Blue Bond to finance sustainable projects in marine transportation, port infrastructure, and environmental protection. This innovative financing instrument will contribute to achieving UN Sustainable Development Goals 14 (Life Below Water) and 6 (Clean Water and Sanitation). By issuing this Blue Bond, DP World aims to increase transparency and meet the growing demand from investors for sustainable investments, according to DP World.
First Blue Bond Issuance
DP World has made history by issuing the first Blue Bond from a company in the Middle East and North Africa. This groundbreaking move demonstrates the company’s commitment to leading the logistics sector and the region towards a more sustainable future. It also marks the first corporate Blue Bond issuance in the broader Central & Eastern Europe, Middle East, and North Africa region.
DP World’s 5-year Blue Bond was issued with a 5.25% coupon rate. T. Rowe Price Associates, Inc., a prominent investment management firm, was the primary investor in this significant issuance.
The Blue Bond aligns perfectly with DP World’s recently launched Ocean Strategy, which emphasizes the crucial link between global trade and environmental stewardship. This strategy, built on four foundational pillars, supports the company’s vision of a Sustainable Blue Economy and aims to eliminate obstacles to comprehensive climate action for the ocean. By issuing this Blue Bond, DP World demonstrates its commitment to advancing the goals of the Paris Climate Agreement and the Kunming-Montreal Global Biodiversity Framework.
Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive of DP World, said: “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.”
“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 demonstrating our approach towards sustainable business practices.”
Eligible Projects
The Blue Bond portfolio focuses on funding projects that contribute to a more sustainable maritime sector. These projects include:
- Sustainable Marine Transportation: Supporting the development and adoption of alternative fuels and technologies to reduce carbon emissions and marine pollution.
- Sustainable Ports Development: Upgrading port infrastructure to minimize environmental impacts, such as noise and air pollution.
- Marine Ecosystem Conservation: Investing in projects that protect and restore marine ecosystems, enhance biodiversity, and implement nature-based solutions.
- Marine Pollution Mitigation: Addressing marine pollution by improving water quality, tackling waste and pollution in coastal areas, and ensuring equitable access to water resources.
This Blue Bond issuance aligns with DP World’s enhanced Sustainable Finance Framework, which adheres to international standards, including guidelines from the International Finance Corporation and a practitioner’s guide on “Bonds to Finance the Sustainable Blue Economy.”
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Source: DP World
