Standard Chartered Bank has led the coordination of DP World’s repricing and extension of its $2 billion credit facilities by two years to July 2023.
This transaction is structured such that the margin of the facility is linked to DP World’s carbon emissions intensity where the company is incentivised to reduce its greenhouse gas emissions.
A total of 19 banks supported DP World in this innovative financing structure, with Standard Chartered leading as green coordinator.
This is the first green loan in the Middle East region with an Islamic format that links pricing to environmental performance in this way.
“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 Mohamed Salama, head of global banking, Standard Chartered, UAE.
“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 as well as sustainability and innovation,” added Yuvraj Narayan, Group CFO, DP World.
“By linking our core banking facility to our environmental performance, we will continue to improve our efficiency on greenhouse emissions and show our commitment to sustainability and the environment.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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