UAE’s Majid Al Futtaim to raise $600 million by selling green sukuk
UAE-based developer and shopping mall operator Majid Al Futtaim is set to raise $600 million by selling “green” sukuk, or Islamic bonds, a document issued by one of the banks leading the sale read on Wednesday.
BNP Paribas, Citi and HSBC have been hired to coordinate the deal, with Abu Dhabi Islamic Bank, Dubai Islamic Bank, ENBD Capital, and First Abu Dhabi Bank also participating.
The bonds, due in February 2030, offer 225 basis points over mid-swaps, down from an initial price guidance of around 250 basis points over.
The offering has received orders in excess of $2.3 billion, including interest from the joint lead managers, the document added.
The bonds will be used to finance or refinance renewable energy projects or projects related to energy efficiency.
Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.