Dubai: Port operator DP World has repriced and extended the maturity of a $2 billion (Dh7.34 billion) ‘green’ loan comprising conventional and Islamic revolving credit facilities, Standard Chartered said. The bank led the coordination of DP World Limited’s repricing and extension of its $2 billion conventional and Murabaha revolving credit facilities by two years to July 2023. A total of 19 lenders provided the facility, which was extended by two years and was now due in 2023.
The loan pricing is linked to DP World’s carbon emission intensity, incentivising the company to reduce its greenhouse gas emission.
“DP World operates in more than 40 countries across six continents, enabling trade through its marine and inland terminals. As a trade-focused bank that is active in many of the same markets, and with similar views on ensuring that we have a positive impact on economies and communities, Standard Chartered is proud to partner with DP World in a transaction that promotes sustainability.” said Mohammad Salama, head of Global Banking at Standard Chartered, UAE.
This is the first green loan in the Middle East region with an Islamic format that links pricing to environmental performance in this way. The transaction is a first-of-its-kind and aligns with the ank’s sustainable lending principles.
“We are delighted to be the first company in the Middle East region to link environmental performance to pricing in this way. This shows DP World’s pioneering efforts in the region’s capital markets as well as sustainability and innovation,” said Yuvraj Narayan, group chief financial officer at DP World.