By Rebecca Melvin
New York, Oct. 23 – Majid Al Futtaim Holding LLC priced a $600 million green sukuk, or Islamic bond, due 2030 (expected ratings: BBB/BBB) at par on Wednesday with a profit rate of 3.933% and a yield spread of 225 basis points over mid-swaps, according to a syndicate source.
The pricing was tightened from guidance in the mid-swaps plus 230 bps area and initial price talk in the mid-swaps plus 250 bps area.
Order books at the time the note was launched were in excess of $2.3 billion.
MAF Sukuk Ltd. is issuer of the note, which is guaranteed by Majid Al Futtaim Holding with Majid Al Futtaim Properties LLC as obligor.
HSBC, BNP Paribas and Citigroup are global coordinators and joint bookrunners of the deal, which was transacted under Regulation S, and Abu Dhabi Islamic Bank, Dubai Islamic Bank, ENBD Capital and First Abu Dhabi Bank were also joint bookrunners.
The proceeds will be used to finance or refinance existing eligible projects such as renewable energy, energy efficiency, sustainable water management and green buildings.
The company is a Dubai-based conglomerate.
| Issuer: | MAF Sukuk Ltd.
|
| Obligor: | Majid Al Futtaim Properties LLC
|
| Guarantor: | Majid Al Futtaim Holding LLC
|
| Amount: | $600 million
|
| Maturity: | Feb. 28, 2030
|
| Description: | Green sukuk
|
| Bookrunners: | HSBC, BNP Paribas, Citigroup, Abu Dhabi Islamic Bank, Dubai Islamic Bank, ENBD Capital and First Abu Dhabi Bank
|
| Profit rate: | 3.933%
|
| Price: | Par
|
| Yield: | 3.933%
|
| Spread: | Mid-swaps plus 225 bps
|
| Trade date: | Oct. 23
|
| Settlement date: | Oct. 30
|
| Ratings: | S&P: BBB
|
| Fitch: BBB
|
| Distribution: | Regulation S
|
| Price talk: | Guided to mid-swaps plus 230 bps area from initial talk of 250 bps area
|
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