Nasdaq Dubai Lists First Blue Bond by DP World
Nasdaq Dubai has made history by listing the Middle East's first Blue Bond, a USD 100 million issuance by DP World.
Summary
Nasdaq Dubai has listed the Middle East's first Blue Bond, a USD 100 million issuance by DP World, marking a significant step in sustainable finance.
In a groundbreaking move for sustainable finance in the Middle East, Nasdaq Dubai has listed the region's first corporate Blue Bond, a USD 100 million issuance by DP World. This landmark listing underscores the growing commitment to Environmental, Social, and Governance (ESG) principles in the region and highlights Nasdaq Dubai's pivotal role in supporting innovative financial instruments.
Issued under DP World’s USD 10 billion Global Medium-Term Note Programme, the Blue Bond carries a 5.250% coupon rate and matures in 2029. The bond achieved a spread of 99.6 basis points above U.S. Treasuries, the tightest spread ever for DP World in both bond and Sukuk markets. This financial milestone not only signifies the region's dedication to sustainable finance but also sets a precedent for future ESG-linked issuances.
The proceeds from this issuance will fund critical marine transportation, port infrastructure, and water-positive initiatives, directly contributing to the United Nations Sustainable Development Goals (SDG) 6 (Clean Water and Sanitation) and SDG 14 (Life Below Water). This move addresses the significant funding gap for sustainable marine and water-related projects, further solidifying Nasdaq Dubai's position as a leading platform for ESG-linked financial instruments.
DP World's Group Chairman and CEO, Sultan Ahmed bin Sulayem, emphasized the importance of this listing in driving sustainable growth and innovation within the global supply chain. He stated, The listing of our first Blue Bond represents a significant step forward in DP World's journey to drive sustainable growth and innovation in the global supply chain. By directing funds toward critical marine and water-positive initiatives, we not only align with the UN’s Sustainable Development Goals but also set a benchmark for sustainable finance in the region.
The listing ceremony was marked by Sultan Ahmed bin Sulayem ringing the market-opening bell at Nasdaq Dubai, alongside Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). Abdul Wahed Al Fahim expressed pride in supporting pioneering ESG-linked issuances such as DP World's first Blue Bond in the region, affirming Nasdaq Dubai's commitment to impactful, ESG-focused financing that contributes to long-term environmental and economic prosperity.
Given the strategic importance of this issuance and the potential for growth in sustainable finance, investors may consider holding onto this instrument. The alignment with global sustainability goals and the strong backing from reputable entities like DP World and Nasdaq Dubai enhance the investment's appeal.
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Summary
Nasdaq Dubai has listed the Middle East's first corporate Blue Bond, valued at USD 100 million, issued by DP World. This bond is part of DP World's USD 10 billion Global Medium-Term Note Programme, with a 5.250% coupon rate maturing in 2029, and achieved a spread of 99.6 basis points above U.S. Treasuries. The proceeds will fund sustainable projects in marine transportation and port infrastructure, aligning with the UN's Sustainable Development Goals 6 and 14. This listing enhances Nasdaq Dubai's reputation as a leading platform for ESG-linked financial instruments, with its total debt market value at USD 137 billion, including USD 29 billion in ESG-linked issuances. The listing ceremony was attended by DP World and Nasdaq Dubai executives, highlighting a commitment to sustainable finance and economic growth.
