How DP World Pioneered MENA's First Blue Bond

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DP World has launched the MENA's first US$100m blue bond (Credit: DP World)
DP World has launched the MENA's first US$100m blue bond, supporting sustainable marine projects that tackle environmental challenges across the region

DP World, a global logistics powerhouse based in Dubai, has launched the MENA region’s first-ever blue bond.

The bond, valued at US$100m, aims to support sustainable marine projects that tackle environmental challenges across the region. It marks a pivotal moment in both the company’s environmental strategy and the development of sustainable finance in the Middle East and North Africa.

With a five-year term and a 5.25% coupon rate, this innovative financial instrument underscores DP World’s commitment to linking business growth with environmental preservation. But what exactly does a blue bond achieve and how does it align with the company’s broader goals?

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What are blue bonds?

Blue bonds are a financial mechanism designed to fund projects that protect and restore ocean health and water ecosystems. They draw inspiration from green bonds, which focus on broader environmental projects such as renewable energy and land conservation.

Blue bonds, however, direct capital specifically towards ocean conservation, pollution reduction and water resource management.

The concept emerged as an answer to the growing crisis facing the world’s oceans, where pollution, overfishing and climate change threaten biodiversity and the livelihoods of coastal communities.

By investing in sustainable marine initiatives, blue bonds provide a pathway to combat these challenges while offering attractive returns for investors.

“Citi is proud to have supported DP World in arranging this important inaugural blue bond issuance,” says Philip Brown, Managing Director and Global Head of Sustainable Debt Capital Markets at Citigroup.

Philip Brown, Managing Director and Global Head of Sustainable Debt Capital Markets at Citigroup | Credit: Citi

“This landmark transaction sets a benchmark for the region.”

The funds raised through DP World’s blue bond are poised to address several urgent environmental needs while setting a precedent for similar financing initiatives in the MENA region.

How DP World plans to use blue bond funds

DP World’s blue bond is an integral part of its Ocean Strategy, which aligns global trade with environmental stewardship.

The company is focusing on projects that contribute to a sustainable blue economy, a term referring to the responsible use of ocean resources for economic growth, improved livelihoods and ecosystem health.

The funding will support initiatives such as:

  • Developing alternative fuels to reduce maritime carbon emissions.
  • Upgrading port infrastructure to minimise environmental impacts.
  • Implementing nature-based solutions like mangrove restoration to protect marine biodiversity.

These projects align with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 14 (Life Below Water) and SDG 6 (Clean Water and Sanitation). By addressing these goals, DP World aims to strengthen its role as a leader in sustainable logistics while preserving marine ecosystems for future generations.

“As a responsible leader in global trade, we are committed to preserving the ocean’s ability to provide for future generations,” adds Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World

“This blue bond will lay the foundation for the years to come, enabling us to remove barriers to comprehensive climate and ocean action.”

Investment management firm T. Rowe Price Associates played a key role as an investor in the blue bond issuance.

Rob Sharps, the firm’s Chairman, CEO and President, affirms: “This innovative transaction will mobilise capital towards UN SDG 14 while providing an opportunity for attractive investment returns. We hope this can serve as a model for other issuers and investors to support the blue economy.”

Rob Sharps, Chairman, CEO and President of T. Rowe Price Associates | Credit: T. Rowe Price Associates

Pioneering sustainability in MENA’s logistics sector

The MENA region faces unique environmental challenges, including water scarcity, marine pollution and coastal biodiversity loss.

These issues require urgent attention and DP World’s blue bond provides a model for addressing them through targeted financing.

The company’s approach reflects the increasing demand for sustainable investment opportunities in the region, driven by environmental pressures and growing investor interest in ESG practices.

By introducing the blue bond, DP World is demonstrating how the logistics industry can innovate to meet the needs of a more sustainable future.

As the company continues to align its operations with sustainability goals, the blue bond serves as a critical step in securing both economic growth and the health of the planet’s marine ecosystems.


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