Dubai-based retail conglomerate and shopping mall operator Majid Al Futtaim has raised $500 million through a 10-year dollar-denominated green sukuk, seeking to diversify its funding base.
The company will use the proceeds from its fourth green sukuk issuance to refinance an older $800 million bond commitment due in May 2024, it said on Thursday.
CEO of Majid Al Futtaim Holding, Ahmed Ismail, said: “The issuance of today’s green sukuk is a testament to the global investment community’s continued confidence and robust support in our company, the sustainability of our debt portfolio and the inherent strength of our long-term strategic focus.
“In reaffirming our commitment to green financing, Majid Al Futtaim is able to further our drive to improve long-term profitability while actively contributing to shaping sustainable finance for the Mena region.”
Majid Al Futtaim launched its debut green sukuk in May 2019, followed by another in October 2019.
The company also raised $1.25 billion through another sustainability-linked loan in September 2022.
The conglomerate became the first Dubai-based privately-owned company to borrow through an SLL facility and continues to be the region’s only ‘penalty-only’ borrower
Majid Al Futtaim said it “consistently delivered on its ESG principles” through other sustainability-linked initiatives, the company said.
The Group strives to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025.
Its annual revenues climbed by 12 per cent year-on-year to Dhs 36.3 billion while earnings before interest, taxes, depreciation and amortisation saw a four per cent year-on-year increase, reaching Dhs 4.1billion.