DP World Raises $1.5B Green Sukuk for Sustainability

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by KnowESG
KnowESG_DP World Raises $1.5B Green Sukuk for Sustainability
Image courtesy of DP World

DP World has underlined its unwavering dedication to eco-friendly operations by successfully raising $1.5 billion through a Green Sukuk, channelling support into its global decarbonisation initiatives.

This Sukuk issuance, which saw an impressive 2.3x oversubscription, has received substantial interest from investors on local, regional, and international fronts. Remarkably, it now stands listed on both Nasdaq Dubai and the London Stock Exchange.

The capital acquired through the Sukuk offering will be reserved for qualified green projects in alignment with DP World's recently unveiled Sustainable Finance Framework. The scope of these projects spans areas such as electrification, renewable energy, clean transportation, and enhanced energy efficiency.

Notably, DP World's Sukuk was priced with a spread of just 119.8 basis points above US treasuries, coupled with an enticing 5.5% coupon rate. This financial instrument achieved one of the narrowest spreads ever witnessed for a corporate entity rated BBB+ on a global scale.

This robust demand for the Sukuk was substantially bolstered by DP World's stellar credit ratings, with Moody's (Baa2/Stable) and Fitch (BBB+/Stable) lending their support. Furthermore, DP World's impressive ESG (Environmental, Social, and Governance) ratings from entities like Sustainalytics ("Negligible risk"), CDP (A- Leadership), and MSCI (B) played a pivotal role in reinforcing investor confidence.

Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group, expressed his aspirations, saying, "We aim to steer global trade toward a more resilient, efficient, and sustainable future for our customers and their customers. That's why we're taking decisive action on a grand scale, leveraging our hands-on expertise to reshape trade for the better. The exceptional pricing achieved for this Green Sukuk is a testament to the confidence investors place in DP World as a company and our unwavering commitment to sustainability."

Yuvraj Narayan, Group Deputy Chief Executive and Chief Financial Officer added, "Our Green Sukuk solidifies our commitment to integrating sustainability into every facet of our operations, ensuring we can effect real societal and economic change. This issuance further aligns our sustainability strategy and decarbonisation efforts with the Group's financing strategy."

DP World's extensive portfolio of green and sustainable assets spans the globe and touches upon various aspects of its diverse, multi-functional business, all with the common objective of promoting sustainable global trade.

Within the realm of Clean Transportation, DP World has embraced electrified freight transportation and hybrid vessels. Their electrified equipment serves as a testament to their mature and robust decarbonisation programme. Additionally, the Group takes pride in its portfolio of green buildings, designed to meet internationally recognised green certification building standards, such as BREEAM and LEED.

Decarbonisation holds a central focus for DP World, as the company has already made substantial commitments to achieving carbon neutrality by 2040 and reaching net-zero carbon emissions by 2050.

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Source: DP World

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