DP World plans USD 1 bn green sukuk issuance: 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 #1- 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.

REMEMBER #2- The port operator is aggressively expanding across the world: DP world is set to snap up a 58% stake in Turkey's Evyap Port, and recently inked a USD 510 mn concession agreement for a new mega container terminal at Kandla, Gujarat in India with India’s Deendayal Port Authority. The port operator has also expanded its presence in Indonesia, with an agreement to expand and modernize Belawan New Container Terminal.

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