Dubai’s Majid al-Futtaim has issued a $500m sukuk, closing on 3 November.

The shariah-compliant instruments, due in 2025, have a coupon rate of 4.5 per cent.

This is the first issuance in the retail conglomerate’s $1.5bn updated sukuk programme, which has a hybrid wakala and murabaha structure. The sukuk are listed on the Irish Stock Exchange and Nasdaq Dubai.

Abu Dhabi Islamic Bank, Dubai Islamic Bank, UK-based HSBC and Standard Chartered, the National Bank of Abu Dhabi were joint lead managers for the trade. Abu Dhabi’s First Gulf Bank and Union National Bank were co-managers.

Dentons were the legal advisors to Majid al-Futtaim. London’s Clifford Chance advised the banks.

“The programme update involved the incorporation of a Murabaha module into the Shariah structure, which was challenging in itself,” said Alex Roussos, capital markets partner at Dentons. “But the real success story is the quality of the investor distribution and excellent pricing that the company achieved in a currently volatile market environment”

Majid al-Futtaim owns and operates 18 shopping malls, 11 hotels and three mixed-use communities in the Middle East and North Africa, including its flagship Mall of the Emirates. It also holds the French Carrefour franchise in 38 countries in Middle East, Africa and Central Asia.

It issued its debut $400m sukuk in 2013.

The sukuk were rated BBB by the UK’s Fitch Ratings.