DP World has reaffirmed its commitment to sustainable operations by raising $1.5 billion through a Green Sukuk to support its global decarbonisation efforts.
The Sukuk, which was oversubscribed 2.3x due to strong demand from local, regional, and international investors, is listed on both Nasdaq Dubai and the London Stock Exchange.
The proceeds from the Sukuk will be earmarked for eligible green projects in line with DP World’s recently published Sustainable Finance Framework.
Current projects cut across electrification, renewable energy, clean transportation, and energy efficiency.
Priced at a spread of 119.8 basis points (bps) above US treasuries with a 5.5 per cent coupon rate, DP World’s Sukuk achieved one of the tightest spreads for a BBB+ rated corporate globally.
The strength of demand for the Sukuk was supported by robust credit ratings, Moody’s (Baa2/Stable) and Fitch (BBB+/Stable), as well as a strong ESG ratings from Sustainalytics (“Negligible risk”), CDP (A- Leadership), and MSCI (B).
DP World Group Chairman and CEO Sultan Ahmed bin Sulayem said: “We aspire to lead global trade into a more resilient, efficient, and sustainable future for our customers and their customers.
“That’s why we are acting with scale and ambition, using our hands-on expertise to reshape trade for the better.
“The price we achieved for this Green Sukuk is phenomenal and represents the confidence investors have in DP World as a company and our commitment to sustainability,” Sulayem added.
READ: DP World breaks ground on 3 million TEU terminal in Indonesia
Yuvraj Narayan, Group Deputy Chief Executive and Chief Financial Officer, added: “Our Green Sukuk amplifies our commitment to placing sustainability at the heart of everything we do, ensuring that we are able to create real societal and economic change.
“Through this issuance we are able to further align our sustainability strategy, and decarbonisation efforts with the Group’s financing strategy,” Narayan added.
In September 2023, DP World has announced the arrival of the first vessel under a new South America shipping service at London Gateway.
More recently, DP World Yarimca introduced an innovative ‘cars in containers’ shipping solution to aid the automotive supply chain crisis in Turkey.
