Skip to content Skip to Search
Skip navigation

DP World to hire banks for 10-year debut green sukuk

DP World has announced a critical expansion plan that will take its total gross capacity to 93.6 million TEUs Wam
DP World’s net profit fell 18 percent year on year to $1.5 billion last year due to higher finance costs

DP World intends to issue its first 10-year US dollar-denominated benchmark-sized green sukuk, as the ports operator expands its global reach.

The Dubai-based company held investor meetings on September 4 and 5, Reuters reported, citing a bank document.

Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, J.P. Morgan and Standard Chartered Bank have been mandated as bookrunners. HSBC is acting as the ESG structurer.

Issuance of green sukuk by DP World Crescent Limited might follow under its $5 billion trust certificate issuance programme, subject to market conditions.

Sukuk are Sharia compliant bonds that were developed as an alternative to conventional bonds which are not considered permissible by many Muslims as they pay interest, and also may finance businesses involved in activities not allowed under Sharia law.

In the past few months, DP World has announced investments in several countries such as India, Turkey, Indonesia, Canada, Romania, among others.

DP World – which manages 9 percent of the world’s handling capacity, putting it among the top five global port operators – last month announced a critical expansion plan that will take its total gross capacity to 93.6 million 20-foot equivalent units (TEUs). 

Demand appears strong in the UAE for Sharia-compliant products, Fitch Ratings said in a report.

The government received bids of AED6 billion for its latest auction of T-sukuk, financial instruments that are Sharia compliant and issued by the federal government in dirhams. The oversubscription rate was 5.5 times.

Debt sales in the region restarted in July after a month-long lull that began after the Commercial Bank of Dubai sold green bonds, with Dubai developer Sobha Realty opening the way with a $300 million sukuk offering.

Two Abu Dhabi banks then followed, raising a total of $1.25 billion from the sale of conventional and Islamic bonds.

Global Islamic finance assets are estimated to have crossed $3.3 trillion in the first half of 2023, according to Fitch.

If impediments are addressed, Fitch expects “strong long-term growth”, although this will likely be concentrated in core markets.

More than 70 percent of global Islamic banking assets are concentrated in the GCC countries, Malaysia, Bangladesh, Jordan and Pakistan. Domestic market shares range from 15 to 85 percent.

Latest articles

Over 400 global food brands are taking part in the SaudiFood Manufacturing show in Riyadh this month

Saudi Arabia’s food factory count rises to 1,300

The total number of food factories operated by the Saudi Authority for Industrial Cities and Technology Zones (Modon) has reached 1,300, across 36 cities. The increase signifies the growing capacity of the domestic food industry and its localisation efforts, the state-run Saudi Press Agency reported. Food industry companies have recorded a growth rate of more […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]

A square in Cairo

‘Worst is behind us’ in Egypt’s black market dollar war says BMI

The Egyptian government’s priority for 2024 should be to keep the gap between the official and parallel exchange rates for Egypt’s pound and the US dollar as narrow as possible, says BMI Research. In a webinar on Tuesday BMI, a Fitch Group firm specialised in country risk, said that “the worst is behind us” in […]

Oman UAE deals Sultan of Oman president of UAE

Oman and UAE sign deals worth $35bn

The UAE and Oman have announced a host of new commercial and business deals worth a total of AED129 billion ($35 billion). The partnerships were agreed during Monday’s state visit to the Emirates by the ruler of Oman, Sultan Haitham bin Tariq al Said.  Investment and collaboration agreements covered areas including renewable energy, green metals, […]