Majid Al Futtaim sets a new standard for sustainable finance with its fourth edition of Green Capital Markets

  • Continuing its regional leadership in responsible finance, Majid Al Futtaim is issuing new green sukuk.
  • Majid Al Futtaim has raised $500m to refinance part of an existing $800m bond due in May 2024.

Majid Al Futtaim, the leading shopping mall, communities, selling by pieces and the entertainment leader in the Middle East, Africa and Asia, today Announced its fourth edition of Green Capital Markets, underlining its continued commitment to Environmental, Social and Governance (ESG) goals. Building on its leading position in sustainable finance, Majid Al Futtaim It raised $500 million through this landmark issuance that will refinance an old $800 million bond obligation.

With its first green sukuk issuance (or Islamic bonds) In May 2019, Majid Al Futtaim introduced Sustainable Finance to the region, paving the way for subsequent successful offerings.

Ahmed Galal Ismail, CEO of Majid Al Futtaim Holding, said: Today’s green sukuk issuance is a testament to the global investment community’s continued confidence and strong support for our company, the sustainability of our debt portfolio and the underlying strength of our long-term strategic focus. In reaffirming our commitment to green finance, Majid Al Futtaim is able to further our quest to improve long-term profitability while actively contributing to shaping sustainable finance for the MENA region.”

Since the advent of Majid Al Futtaim Green Sukuk Issuance In May 2019, the company demonstrated a prudent preference for financing linked to sustainability. A second green sukuk was raised in October 2019, followed by a $1.5 billion sustainability-related loan in July 2021. With SLL, Majid Al-Futtaim was the first Privately owned Dubai Company to borrow through such innovative facilities and remains the only “no penalty only” borrower in the region, which confirms the company’s commitment to achieving real and tangible sustainability goals. Moreover, a second SLL closed in September 2022 for $1.25 billion.

Apart from green finance, Majid Al Futtaim is constantly advancing environmental, social and corporate governance principles through several other sustainability-related initiatives. The group is on track to deliver on its commitment to achieve a positive water and energy footprint by 2040 and to eliminate single-use plastic in all of its operations by 2025. It is one of the first private companies in the region to commit to setting Science-Based Targets (SBTs) to accelerate decarbonization efforts across its business . In addition, Majid Al Futtaim’s flagship shopping malls, Mall of the Emirates and Mall of Oman, as well as all 13 owned hotels in its portfolio, have received LEED Platinum certification, adding to the company’s green-certified real estate that now spans 4 million square metres. meters.

Majid Al Futtaim ended 2022 on a strong financial position, with group revenue growing 12% year-on-year to AED 36.3 billion, while EBITDA up 4% year-on-year to AED 4.1 billion driven by operational performance for the group. and investments in digital transformation, data analytics, and loyalty programs. In addition, the group has maintained the “Green Star” status of Global Real estate Sustainability Standard (GRESB) and also maintained an ESG Low Risk rating by Sustainalytics for fiscal year 2022.

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