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Emirati port operator DP World has issued MENA’s first blue bond worth USD 100 mn, according to a statement released on Thursday. The issuance is also the first corporate blue bond out of the broader Central and Eastern Europe, Middle East, and North Africa region.
SOUND SMART- What is a blue bond? A blue bond is a facility that supports sustainable marine and fisheries projects. It is used by governments or development banks to raise funds from key investors to finance marine and ocean-based projects.
Tightest spread for DP World so far: The five-year blue bond was priced at a spread of 99.6 bps above US treasuries — representing DP World’s tightest ever spread in the bond or sukuk market. It also came with a 5.25% coupon rate.
Where will the money go? The funds will go towards several projects, including sustainable port development, expanding marine ecosystem conservation and restoration projects, and marine pollution initiatives.
REMEMBER- DP World was looking to raise at least USD 1 bn from a 10-year USD-denominated green sukuk issuance with initial price guidance of around 150 basis points above US Treasuries in September 2023.
ADVISORS- Global investment management firm T. Rowe Price Associates was the main investor, while Citigroup supported the port operator in arranging the issuance under its updated sustainable finance framework.
