Banking & Finance Majid Al Futtaim picks banks for dollar green sukuk By Reuters May 23, 2023 Majid Al Futtaim The company will use proceeds for funding or refinancing eligible green projects UAE retail conglomerate Majid Al Futtaim (MAF) has mandated banks for a possible 10-year benchmark-sized green Islamic bond, an indicative term sheet seen by Reuters showed. Proceeds from the sukuk sale will go towards funding or refinancing eligible green projects under the company’s green finance framework of 2019. Benchmark-sized is typically understood to mean at least $500 million. Citigroup, HSBC and Standard Chartered are joint global coordinators on the deal; they are joined as lead managers by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank and First Abu Dhabi Bank. MAF also announced a fixed price tender offer for its outstanding $800 million senior unsecured notes due May 2024, for a maximum principal amount of $500 million. Dubai-based MAF, one of the leading family-owned business groups in the UAE, had assets of $18 billion at the end of 2022, and a portfolio spanning shopping malls, entertainment and hospitality, among others, an investor presentation seen by Reuters showed. A rapid economic recovery in Dubai post Covid-19 supported an increase in MAF revenue last year of 12 percent over the previous year to $9.9 billion. Rated BBB by Fitch and Standard & Poor’s, MAF has about $4.3 billion in outstanding bonds and bank facilities, excluding undrawn facilities, the investor presentation said.
