Majid Al Futtaim, a renowned group specializing in the development and management of shopping malls, integrated cities, and retail and entertainment facilities across the Middle East, Africa, and Asia, has successfully issued bonds worth $500 million with a maturity of ten years, marking its return to the international capital markets.
The bond issuance achieved a profit rate of 4.875%, receiving exceptional demand from investors, with subscriptions exceeding $2 billion—over four and a half times the size of the offering. This demonstrates global investors’ confidence in the group’s credit strength and its prominent position in international markets.
International investors accounted for 45% of the total allocation, while regional investors from the Middle East made up 55%, highlighting the broad and diverse support that Majid Al Futtaim receives from various investor segments worldwide.
The immediate execution of the issuance on the same day as the trading session is an advanced approach adopted by major bond issuers to keep pace with daily market fluctuations. Majid Al Futtaim achieved the tightest ever interest margin on ten-year bonds, set at 95 basis points over U.S. Treasury yields, reflecting the efficiency of the execution and the competitive pricing of the issuance.
Ahmed Galal Ismail, CEO of Majid Al Futtaim Holding, remarked, “The successful completion of this transaction is a significant milestone that reaffirms our strategic vision and solidifies Majid Al Futtaim’s position as a leading reference issuer in the global bond market. The successful issuance of our latest bonds demonstrates the strength of Majid Al Futtaim’s credit profile and the ongoing trust we receive from the global investor community, culminating in achieving the tightest pricing margin for ten-year bonds in the group’s history, underscoring our commitment to sound financial governance and our strong relationship with investors.”
The proceeds from this issuance will be utilized to refinance upcoming bonds maturing in November 2025, reaffirming Majid Al Futtaim’s commitment to proactively manage its financial obligations, thereby enhancing the sustainability of its financial position.
HSBC and Standard Chartered acted as joint global coordinators, overseeing the subscription management and order books, alongside Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, and GIB Capital, who served as joint bookrunners. Additionally, ABC Bank participated as a co-manager of the subscription.
Majid Al Futtaim continues to maintain a balanced debt structure and strong liquidity, covering net funding needs for over four years through available cash liquidity and confirmed credit lines. This is backed by a proven track record of notable resilience, sound governance, and a high capacity for generating cash flows, allowing the company to secure a robust position for delivering sustainable long-term value to its stakeholders through disciplined growth, strategic diversification, and ongoing investment in high-quality assets.