DP World: The Company Behind MENA's First-Ever Blue Bond
Dubai-based logistics provider DP World has broken new ground in the Middle East and North Africa (MENA) region as it releases its first blue bond, set to raise US$100m to fund sustainable projects in the region’s maritime and water sectors.
The issuance - five-year bond priced at a 5.25% coupon rate - represents a significant step in addressing pressing environmental challenges and advancing corporate responsibility in the region.
What exactly are blue bonds?
Bonds are a familiar concept in the world of business. Essentially, they are capital loans given out by investors to organisations that need funding for projects, paid back at an agreed upon rate of interest.
Blue bonds are a relatively recent innovation in the world of climate finance, designed to give support to projects that promote healthy oceans and the responsible conservation of water resources.
They build on the principles of green bonds which focus on broader environmental objectives, such as the green bonds Spanish firm Iberdrola is using for renewable energy projects.
Right now, our oceans are in sharp focus on the international stage. The damage being done to these ecosystems as a result of consumption and pollution is more apparent than ever before.
By channelling investments into areas like marine ecosystem conservation and pollution reduction, blue bonds may be a tonic to these mounting concerns.
Inside DP World’s Ocean Strategy
DP World’s blue bond aligns with its Ocean Strategy, which aims to link global trade with environmental stewardship and contribute to the Sustainable Blue Economy.
“As a responsible leader in global trade, we are committed to preserving the ocean’s ability to provide for future generations,” says Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.
“This blue bond will lay the foundation for the years to come, enabling us to remove barriers to comprehensive climate and ocean action,” he continues.
What kind of projects will benefit from DP World’s blue bond?
The firm hopes that this new wave of funding can support a vibrant portfolio of initiatives, ranging from sustainable marine transportation to marine pollution mitigation.
Several projects are already slated for 2025, including the development of alternative fuels to reduce maritime carbon emissions, the upgrading of port infrastructure to minimise environmental impacts and the implementation of nature-based solutions for ecosystem restoration.
Crucially, these efforts will align with the United Nations’ Sustainable Development Goals (SDGs) 14 (Life Below Water) and 6 (Clean Water and Sanitation).
Investment management firm T. Rowe Price Associates, Inc. served as one of the key investors in the issuance of DP World’s blue bond.
“This innovative transaction will mobilise capital towards UN SDG 14 while providing an opportunity for attractive investment returns. We hope this can serve as a model for other issuers and investors to support the blue economy,” says Rob Sharps, the firm’s Chairman, CEO, and President.
The blue bond was issued under DP World’s enhanced Sustainable Finance Framework, which aligns with international standards such as the International Finance Corporation’s Guidelines for Blue Finance.
Philip Brown, Managing Director and Global Head of Sustainable Debt Capital Markets at Citigroup, is a strong supporter of DP World’s framework.
“Citi is proud to have supported DP World in arranging this important inaugural blue bond issuance,” he says.
“This landmark transaction sets a benchmark for the region.”
Driving sustainability in the MENA region
The MENA region’s sustainability journey has gained momentum in recent years, driven by the dual pressures of climate change and investor interest in ESG.
However, challenges remain, particularly in addressing marine pollution, water scarcity, and coastal biodiversity loss.
DP World’s blue bond issuance reflects a growing recognition of the need for targeted, innovative financing solutions to bridge the funding gap for critical environmental goals.
“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,” says Sultan Ahmed bin Sulayem.
“This issuance represents our ongoing commitment to sustainable business practices and demonstrates our ability to lead the logistics sector towards a resilient future.”
Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Sustainability Magazine is a BizClik brand
