DP World launches its maiden green sukuk: UAE port operator DP World’s has launched a USD 1.5 bn from a 10 year USD-denominated green sukuk issuance due sometime this month, according to a document from one of the arranging banks cited by Reuters. The issuance raked in over USD 3.4 bn in orders, Reuters reports. That makes it c.2.3x oversubscribed, according to our calculations. The exact allocation and pricing have yet to be announced by the port operator.

The details: The sukuk — launched by subsidiary DP World Crescent under its USD 5 bn Trust Certificate Issuance Programme — was offered at a 5.5% yield.

More to come? The UAE port operator is also reportedly eying another USD 1 bn green sukuk issuance under the same program, depending on market conditions, according to a bank document from one of the arranging banks picked up by Reuters earlier.

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 issuance, while HSBC is serving as the sole ESG structurer.

DP World has been making moves recently: The port operator has been on an expansion spree, most recently inking a USD 510 mn concession agreement for a new mega container terminal at India’s Kandla, Gujarat with India’s Deendayal Port Authority. It has also inked an agreement to expand its presence in Indonesia by expanding and modernizing Belawan New Container Terminal with Indonesia’s state-owned port operator Pelindo. The operator is also set to snap up a 58% stake in Turkey’s Evyap port.

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