DP World lists $1.5b Green Sukuk on Nasdaq Dubai

Nasdaq Dubai has welcomed the listing of a $1.5 billion Green Sukuk by DP World, a leading provider of global end-to-end supply chain solutions. The dually listed Sukuk issuance proceeds will be earmarked for eligible green projects in line with the company’s recently published Sustainable Finance Framework which cut across electrification, renewable energy, clean transportation and energy efficiency.

Today, Nasdaq Dubai boasts a substantial total debt value, currently standing at $120.95 billion. Within the broader spectrum of ESG classified issuances, the total value reaches $25.45 billion, with Nasdaq Dubai’s Green issuances alone accounting for $17.55 billion. Notably, DP World’s listing issuance has played a significant role in elevating Nasdaq Dubai’s total Sukuk listings to an impressive $79 billion, enhancing Dubai’s financial standing on the world stage.

To commemorate the successful listing, Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM) rang the bell at the market-opening ceremony at Nasdaq Dubai.

The 10-year Green Sukuk, garnered significant investor interest with $3.4 billion order book from local, regional, and international investors. Supported with robust credit ratings - Moody’s (Baa2/Stable) and Fitch (BBB+/Stable) - and strong ESG ratings from Sustainalytics (“Negligible Risk”), CDP (A- leadership), and MSCI (B), the Sukuk was priced at a spread of 119.8 bps above US treasuries with a 5.5% coupon rate, achieving one of the tightest 10-year spread for a BBB rated corporate issuer from the Central and Eastern Europe, the Middle East and Africa (CEEMEA) region ever.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO at DP World, 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.”

Hamed Ali, CEO of Nasdaq Dubai and DFM, said, “We are thrilled to commemorate the milestone Green Sukuk listing of DP World on Nasdaq Dubai. This significant achievement not only underscores the robustness and attractiveness of the Dubai capital market but also highlights the increasing demand for Islamic & Green finance instruments in the region. Nasdaq Dubai remains dedicated to fostering innovation and advancing the growth of the UAE financial market and the region’s efforts towards sustainability, and we are proud to offer a diverse range of investment products. We extend our wholehearted support to DP World and the Group’s commitment to sustainability.”

Yuvraj Narayan, Group Deputy CEO and CFO at DP World, 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, and we are able to further align our sustainability strategy, and decarbonisation efforts with the Group’s financing strategy.”

Notably, the total value of Sukuk listed under DP World’s $5 billion Trust Certificate Issuance Programme have reached US$4 billion, including this issuance. At COP27 last year, DP World had announced decarbonisation as a core focus, committing to becoming carbon neutral by 2040 and net zero carbon by 2050.