Recently, Louisiana Salge (EQ Investors) and Ellen O’Doherty (T. Rowe Price) discussed the launch and impact of the DP World Blue Bond, and how clients at EQ Investors (EQ) can trace their capital all the way to its origination.

What Are blue bonds?

Blue bonds are innovative financial instruments that channel investment into ocean-friendly projects, aligning with the United Nations Sustainable Development Goals (SDGs) especially SDG 14 (life below water) and SDG 6 (clean water and sanitation). For investors, they are a chance to make a tangible difference while seeking financial returns.

What makes this DP World Blue Bond special

In December 2024, DP World issued its first $100 million blue bond, with all proceeds dedicated to water and ocean initiatives – all clearly defined and measurable.  Projects include cleaner shipping, coral reef and mangrove restoration (targeting over 280 hectares by 2030), pollution reduction, and energy-efficient port upgrades.

Rowe Price’s role

As anchor investor, T. Rowe Price worked closely with DP World throughout 2024, ensuring a significant focus on marine conservation and solid KPIs that will help them hold DP World to account. Their rigorous due diligence assessed both financial and environmental impact, ensuring the quality necessary for inclusion in T. Rowe’s impact bond strategies.

>>WATCH HERE

Why it matters

This blue bond is model for how collaboration in capital markets can drive positive change in an underserved SDG.

Through investing in EQ’s impact and sustainable portfolios, which in turn invest in T. Rowe Price’s impact bond strategies, our clients were able to have an additional impact on this issue.

Looking ahead

The blue bond market is young but growing, with $1–2 billion in new issuances expected soon, helped along by the active impact bond team at T Rowe. Projects we are excited about could include financing new sanitation infrastructure in Brazil, or water efficiency in areas facing more climate-change induced water stress.