Nasdaq Dubai facilitates listing of DP World’s $1.5bn green sukuk

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International financial exchange Nasdaq Dubai hosted the listing of a $1.5 billion green sukuk by logistics monolith DP World, according to a press statement.

The Dubai-based stock exchange said that dually listed sukuk issuance proceeds would be earmarked for eligible green projects, encompassing electrification, renewable energy, clean transportation and energy efficiency.

According to the statement, DP World’s 10-year green sukuk received significant interest, drawing $3.4 billion from local, regional and international investors.

The sukuks were priced at a difference of 119.8 basis points over US Treasury bonds at an average coupon rate of 5.5 percent.

“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,” said DP World Group Chairman Sultan Ahmed bin Sulayem in the statement.

The statement further said that Nasdaq Dubai’s current value of listed bonds is $120.95 billion.

While the listing of bonds under the ambit of environmental, social and governance reached $25.45 billion, green issuances amounted to $17.55 billion.

Notably, DP World’s listing raised the total sukuk listings on Nasdaq Dubai to $79 billion, enhancing Dubai’s financial standing on the world stage.

“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 and green finance instruments in the region,” said Nasdaq Dubai CEO Hamed Ali.

He added: “Nasdaq Dubai remains dedicated to fostering innovation and advancing the growth of the UAE financial market and the region’s efforts toward 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.”

Notably, the total value of sukuk listed under DP World’s $5 billion Trust Certificate Issuance Program has reached $4 billion, including this issuance.

At the UN climate conference held last year in Egypt, DP World announced decarbonization as a core focus, committing to becoming carbon neutral by 2040 and net zero carbon by 2050.

Meanwhile, on Monday, Abu Dhabi Islamic Bank also listed its $500 million green sukuk on the London Stock Exchange’s International Securities Market and Sustainable Bond Market.

The five-year senior sukuk is priced at a profit rate of 5.695 percent per annum and is payable semi-annually. The issuance was met with exceptional demand, with the final order book closing at $2.6 billion, representing an oversubscription rate of over five times.

Source: Nasdaq Dubai facilitates listing of DP World’s $1.5bn green sukuk