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Wed 23 Oct 2013 08:48 AM

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Dubai's Majid Al Futtaim plans $500m hybrid bond

The note, which will be callable after five years, is expected to price on Wednesday

Dubai's Majid Al Futtaim plans $500m hybrid bond

Emirati malls operator Majid Al Futtaim has set a maximum deal size of $500m on a new hybrid bond, according to a lead.

The order book on the deal is above $1bn, the lead said.

The note, which will be callable after five years, is expected to price on Wednesday.

Initial price thoughts remain at mid to high 7%s.

The issuer, rated BBB-/BBB-, hosted investor calls on Monday and Tuesday. The company first went on roadshows in May this year but decided not to launch a deal at the time because of unfavourable market conditions.

Goldman Sachs and HSBC are structuring advisors and joint bookrunners with Bank of America Merrill Lynch, Emirates NBD Capital, JP Morgan and Standard Chartered.

The Reg S-only notes are expected to be rated BB+ and to receive a 50% equity credit by both Standard & Poor's and Fitch.