Majid Al Futtaim Raises $500m via Green Sukuk
Dubai-based property and retail conglomerate Majid Al Futtaim (MAF) has successfully raised $500 million through a 10-year dollar-denominated green sukuk.
This significant issuance comes as investor demand and favourable conditions contribute to the increasing number of issues from the GCC region.
The proceeds from MAF's fourth green sukuk will be used to refinance an existing $800 million bond commitment set to mature in May 2024. This move highlights MAF's preference for sustainable funding and reinforces its commitment to responsible financial practices.
MAF made its debut in sustainable financing in May 2019 with its inaugural green sukuk issuance, setting the stage for subsequent successful offerings. The company has consistently demonstrated its focus on sustainability by issuing a second green sukuk in October 2019 and securing a $1.5 billion sustainability-linked loan (SLL) in July 2021.
As the first Dubai-based privately-owned company to borrow through an SLL facility, MAF continues to be the region's only 'penalty-only' borrower. In September 2022, the company closed its second SLL for $1.25 billion, further solidifying its commitment to sustainable finance.
Ahmed Galal Ismail, CEO of MAF, expressed gratitude for the continued support and confidence from the global investment community. He emphasised that this green sukuk issuance reinforces MAF's long-term strategic focus and positions the company as a key player in shaping sustainable finance in the MENA region.
MAF is on track to achieve its ambitious sustainability goals, including a positive water and energy footprint by 2040 and eliminating single-use plastic from all operations by 2025. The company's annual revenues have seen a 12% year-on-year increase, reaching Dhs36.3 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 4% YoY to Dhs4.1 billion. This growth is driven by the group's operational performance and investments in digital transformation and data analytics.
Established in 1992, MAF is a diversified lifestyle conglomerate operating in 16 markets across the Middle East, Africa, and Asia.
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Source: Gulf Business