Dubai's MAF picks banks for bond sale

Retail group to use sale to fund $683m acquisition of Carrefour's 25% stake in MidEast venture
Dubai's MAF picks banks for bond sale
Peter Walichnowski, CEO, Majid Al Futtaim Properties. (Photo for illustrative purposes only)
By Reuters
Thu 23 May 2013 09:29 AM

Dubai's Majid Al Futtaim (MAF), which is buying Carrefour's stake in a regional joint venture, has picked five banks to arrange the sale of a dollar-denominated hybrid bond, a document from lead arrangers showed.

The sale of perpetual hybrid bond - which combines elements of both debt and equity - is to fund MAF's $683 million acquisition of Carrefour's 25-percent stake in a joint venture in the Middle East, sources told Reuters on Wednesday.

Family-owned MAF has picked Goldman Sachs and HSBC Holdings as "joint structuring advisors" on the planned sale, together with BofA Merrill Lynch, JP Morgan and Standard Chartered Bank as joint bookrunners.

Investor meetings for the planned sale begin on May 26 and is scheduled to take place in the UAE, Asia and Europe.

MAF is the only investment-grade private corporation in the Gulf to have previously issued bonds.

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