MAF Launches $400mn Sukuk

The mall operator is undertaking several new projects across the Middle East this year.

Dubai-based Majid Al Futtaim (MAF) Holding has launched a $400 million five-year sukuk with a profit rate of 5.85 per cent, reports Reuters.

The bookrunners for the deal were Abu Dhabi Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered.

The MAF group, which operates malls and hotels across the Middle East, is currently on an expansion spree. Earlier this month MAF announced that it would complete constructing two shopping malls -Fujairah City Centre and Beirut City Centre- within the next 12 months, and that it will also begin work on its Mall of Egypt project in Cairo. MAF’s retail division also expects to open around 15 new Carrefour hypermarkets and 25 to 30 new supermarkets in 2012.

The group’s revenues increased 10 per cent in 2011 to reach Dhs18.7 billion, recording the “best performance of its business operations since the group was founded in 1992” MAF said in a statement in January.

“Diversification across business segments and geographies has been a key driver in ensuring strong operating performance. In particular, strong performance in Dubai helped to offset any softness resulting from regional turmoil,” MAF CEO Iyad Malas said.

MAF Holding had assets worth around Dhs35 billion and a net debt of around Dhs7.5 billion at the end of 2011.