Loan deal follows decision to put bond issue on hold
Dubai-based Majid al-Futtaim (MAF) has appointed banks to arrange a $1bn loan deal after putting a planned bond issue on hold.
Several banks have already been approached about the deal, including the UK’s Barclays Capital and Standard Chartered, and the local Emirates NBD, who were also working on the company’s bond issue.
The new loan is split between a three-year and a five-year tranche. Banks are being invited to commit in either dirhams or dollars. The three-year tranche is priced at 250 basis points above the London interbank offered rate (Libor) and the five-year tranche will be priced at 275 basis points.
MAF put its bond issue on hold in June after worries about Greek debt caused a spike in pricing in the bond markets. The company is raising the money to fund its expansion plans, which includes the continued build-out of its presence in Egypt. The company is planning to open the Mall of Egypt in 2014.
MAF operates several malls throughout the region, including Mall of the Emirates in Dubai. In 2010, the company made a profit of AED955m ($271m).