DP World reprices, extends ‘green’ loan

Port operator DP World has repriced and extended the maturity of a $2 billion (Dh7.34 billion) ‘green’ loan comprising conventional and Islamic revolving credit facilities, Standard Chartered said.

The bank led the coordination of DP World Limited’s repricing and extension of its $2 billion conventional and Murabaha revolving credit facilities.

A total of 19 lenders provided the facility, which was extended by two years and is now due in 2023.

The loan pricing is linked to DP World’s carbon footprint, incentivising the company to reduce its greenhouse gas emissions.

“DP World operates in more than 40 countries across six continents, enabling trade through its marine and inland terminals. As a trade-focused bank that is active in many of the same markets, and with similar views on ensuring that we have a positive impact on economies and communities, Standard Chartered is proud to partner with DP World in a transaction that promotes sustainability.” said Mohammad Salama, head of Global Banking at Standard Chartered, UAE.

First of its kind

This is the first green loan in the Middle East region with an Islamic format that links pricing to environmental performance in this way.

“We are delighted to be the first company in the Middle East region to link environmental performance to pricing in this way. This shows DP World’s pioneering efforts in the region’s capital markets,” said Yuvraj Narayan, DP World group chief financial officer.