Majid Al Futtaim Properties Prices $500mln 10-Year Sukuk

Majid Al Futtaim Properties (MAF) has priced its $500 million 10-year senior unsecured sukuk at a spread of US treasuries plus 95 basis points, tightening from  initial price thoughts of T+125bps as books exceeded $1.8 billion, including joint lead manager interest.

The sukuk, issued via MAF Sukuk Ltd under the company’s $3 billion debt issuance programme, was priced at a profit rate of 4.875% and a yield of 4.955%. The notes were offered at a reoffer price of $99.375.

The sukuk will be listed on both the Dublin and Dubai stock exchanges.

Proceeds from the sukuk are expected to support general corporate purposes and refinancing needs.

The Middle East accounted for 55% of the investors, followed by 23% from the UK and 16% from Asia. Buyers were mainly banks (52%) and fund managers (46%).