In one of the most ambitious programs to boost sustainability, DP World announced a $100 million Blue Bond, a first-ever by any company in the MENA region. Priced at a five-year 5.25% coupon rate, the blue bond marks a significant step towards aligning economic growth with care for the environment. It will finance or refinance projects related to sustainable marine transport, the enhancement of port facilities, marine ecosystem conservation, and pollution mitigation.
The Blue Bond aligns with DP World’s Ocean Strategy as well as its Decarbonisation and Water Strategies, reflecting the company’s long-standing commitment to sustainable practices. The initiative supports the United Nations Sustainable Development Goals (SDGs), particularly SDG 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation), highlighting its focus on preserving marine ecosystems and enhancing water quality.
“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 CEO of DP World. He emphasized the company’s dedication to sustainable development in maritime operations and the importance of fostering global trade without compromising environmental integrity.
The proceeds from the bond would be used to finance some priority projects: alternative fuels, which would reduce maritime pollution, port infrastructure to reduce environmental and noise impact, nature-based solutions to restore marine ecosystems, and waste management to address coastal and marine waste. This can be done to help develop more sustainable maritime activities and contribute to global biodiversity conservation.
The bond has attracted strong investor confidence, with T. Rowe Price Associates serving as the primary investor. Rob Sharps, CEO of T. Rowe Price Group, commended the transaction for mobilizing capital towards SDG 14 while delivering attractive returns to investors. He highlighted the innovative nature of the bond and its role in fostering the blue economy, a critical area for sustainable development. Citigroup acted as the financial advisor for the issuance, further solidifying the bond’s credibility in international markets.
DP World’s Blue Bond builds on the company’s prior successes in sustainable financing, including its Green Sukuk Impact and Allocation Report. Of the $1.5 billion raised through the Green Sukuk, $1.17 billion has already been allocated to eligible green projects, leading to the avoidance of 177 million kilograms of CO2 emissions and significant energy savings. These milestones underscore DP World’s leadership in integrating sustainability into its operations and its ability to set benchmarks for the region.
The issuance of the Blue Bond also establishes a model for future sustainable financing in MENA, showcasing how profitability can align with environmental impact. “We hope this transaction can serve as a model for other issuers and investors to support the blue economy,” added Sharps.
DP World’s Blue Bond demonstrates the transformative potential of sustainable financing in addressing global environmental challenges while maintaining economic viability. As the region’s first Blue Bond, it sets a precedent for other businesses to adopt innovative approaches that balance financial success with ecological preservation.