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Majid Al Futtaim lists world’s first corporate green sukuk

DUBAI, 7 days ago

Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia today (May 15) has announced the listing of the world’s first benchmark corporate green sukuk (Islamic bond) at Nasdaq Dubai.

Valued at $600 million and with a tenor of ten years, it is the first green sukuk issued by a corporate in the region, said a statement from Majid Al Futtaim.

The green sukuk is testament to retail giant’s long-term commitment to support the transition to a low carbon economy.

The investment will be used to finance and refinance Majid Al Futtaim’s existing and future green projects, including green buildings, renewable energy, sustainable water management, and energy efficiency, it added.

To celebrate the feat, Majid Al Futtaim - Holding CEO Alain Bejjani rang the market-opening bell in the presence of Dubai International Financial Centre (DIFC) Governor and Dubai Islamic Economy Development Centre (DIEDC) Chairman Essa Kazim; Nasdaq Dubai CEO Hamed Ali besides other members of Majid Al Futtaim’s leadership team.

Bejjani said: "This issuance will enable Majid Al Futtaim to deliver more sustainable experiences for our customers and to address the implications of climate change."

"As we progress on our sustainability journey, we are extremely proud to list the world’s first benchmark corporate green sukuk and look forward to identifying and pioneering innovative ways to meet our ambition to be Net Positive by 2040," he noted.

"The widespread interest from global investors in the bond indicates their confidence in our ESG rating, BBB credit rating, and prudent financial and risk management approach. Investors’ faith in our vision empowers us to continue on our path to become one of the most environmentally sustainable companies within our industries," he added.

Kazim pointed out that Majid Al Futtaim’s green sukuk listing reflects the forward-looking and progressive outlook of Dubai’s leading businesses and the vitality of its capital markets infrastructure.

"The listing further supports Dubai’s growth as the global capital of the Islamic economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai," he noted.

In preparation for issuance of the green sukuk, Majid Al Futtaim recently established a Green Finance Framework and a Green Finance Steering Committee, which will oversee the selection of new and existing projects for the green portfolio.

Majid Al Futtaim has also received a “low risk” environmental, social and governance (ESG) rating by Sustainalytics, an independent ESG auditor, certifying the company is at ‘low risk’ of experiencing financial impact from ESG factors, due to its low exposure and effective management of ESG issues.

Ibrahim Al Zu’bi, the chief sustainability officer at Majid Al Futtaim - Holding, said: "The green sukuk demonstrates our commitment to upholding sustainable practices across our businesses and communities we operate in."

"It further supports our ambitious Net Positive strategy and through the proceeds generated, will deliver impactful and measurable socio-economic and environmental benefits," noted Al Zu'bi.

With this listing, the total value of all debt instruments listed on Nasdaq Dubai by Majid Al Futtaim has reached $2.4 billion.

The company’s other listings comprise one sukuk of $500 million that listed in 2015, and two conventional bonds of $500 million each that listed in 2013 and 2014 respectively, and a $300 million tap on the 2014 bond that listed in 2016.

Hamed Ali said: "We are delighted to further strengthen our close collaboration with Majid Al Futtaim through this listing."

"Nasdaq Dubai is committed to supporting the company as well as all its issuers through the high visibility that we provide to investors around the world as well as best practice regulatory infrastructure," he added.-TradeArabia News Service




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