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First ever blue bonds for DP World: Port operator DP World has issued the Mena region’s first blue bond worth USD 100 mn, according to a statement. 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.
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.
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.
