Nasdaq Dubai has listed the first corporate blue bond in the MENA region, valued at $100 million, by DP World
Nasdaq Dubai welcomed the first corporate blue bond in the Middle East and North Africa (MENA) on Thursday. The bond, worth $100 million, was issued by the logistics company DP World.
DP World’s Blue Bond
DP World has issued a blue bond under its $10 billion medium-term note program. This bond has a 5.2% interest rate and will mature in 2029. DP World and Nasdaq Dubai shared this information in a statement.
To mark the occasion, Sultan Ahmed bin Sulayem, the CEO of DP World, rang the market-opening bell at Nasdaq Dubai. He was joined by Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).
The bond issuance achieved a spread of 99.6 basis points (bps) above US Treasuries, which is the narrowest spread ever for DP World in both the bond and Sukuk markets. The money raised will be used for sustainable projects, such as marine transportation, port infrastructure, and water-positive initiatives.
This bond is expected to improve transparency in the growing market for blue assets. It also helps meet the UN’s sustainable development goals, especially in funding marine and water-related projects.
Currently, DP World and its subsidiaries have 11 debt listings on Nasdaq Dubai, totaling $10 billion, including bonds and sukuk.
T Rowe Price Associates, an investment management firm, was the main investor in the bond, according to DP World, which is ranked first in the Transport and Logistics sector of Forbes Middle East Sustainability Leaders 2024 list.
Nasdaq Dubai listings
Nasdaq Dubai’s ESG (Environmental, Social, and Governance) products include green bonds, sustainability bonds, and now the first blue bond in the region. The total value of debt listed on Nasdaq Dubai is $137 billion, with $29 billion of it being ESG-linked bonds.
DP World’s $100 million listing will increase Nasdaq Dubai’s total debt market value to $143 billion, with 163 listings.
Green Sukuk
DP World, which is mostly owned by the Dubai government, said the blue bond follows its green sukuk issuance in 2023, raising $1.5 billion to support global efforts to reduce carbon emissions.
Out of the total funds raised, $1.2 billion has been used for green projects, which have helped avoid CO2 emissions, saved 466,057 MJ of energy, and generated 866,686 kWh of renewable energy.
Published: 31th January 2025
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