Dubai: DP World has raised $1.5 billion through a green sukuk to support its global decarbonisation efforts, it said on Thursday.
The sukuk, which was oversubscribed 2.3 times 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.
The sukuk is priced at a spread of 119.8 basis points above US treasuries with a 5.5 per cent coupon rate.
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.”
Yuvraj Narayan, Group Deputy CEO 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.”