More green sukuk incoming, courtesy of DP World: UAE port operator DP World is looking to raise at least USD 1 bn from a 10-year USD-denominated green sukuk issuance with initial price guidance of around 150 basis points above US Treasuries, Reuters reports, citing a bank document it has seen.

Advisors: Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan, and Standard Chartered Bank are acting as the bookrunners for the debt sale, while HSBS is serving as the sole ESG structurer.

More to come? The UAE port operator is also reportedly eying another USD 1 bn green sukuk issuance through its subsidiary DP World Crescent Limited as part of its USD 5 bn Trust Certificate Issuance program, according to a bank document from one of the arranging banks.

REMEMBER- Green sukuk and bond issuances have gov’t support: The UAE government said it would exempt firms issuing green debt instruments — including sukuk and traditional climate-aligned bonds — from paying registration fees in 2023 to support funding for climate-friendly projects last July.

It’s been a busy 2023 for green bonds so far: Earlier this week, the Abu Dhabi Commercial Bank — the UAE’s third largest bank — raised USD 650 mn from five-year green bonds, setting the price guidance for the green notes at 125 basis points over US Treasuries. Back in July, First Abu Dhabi Bank issued a three-year AED 1.3 bn (c. USD 350 mn) green sukuk issuance, and before that in June the Commercial Bank of Dubai raised USD 500 mn through its inaugural green bond issuance.

And it doesn’t seem to be slowing down: BNP Paribas expects the global climate-friendly bond sales to climb up to c. USD 600 bn, outstripping 2021’s all-time high. The MENA region reported a 532% y-o-y rise in green and sustainable finance to USD 24.55 bn in 2021, up from USD 3.8 bn a year earlier, according to a report by consultancy Arthur D Little.

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