Sources say revolving credit facility likely to be in excess of $1.5bn and will refinance existing debt
Dubai's Majid Al Futtaim, a holding company which owns and operates shopping centres in the Middle East and North Africa, is in talks with banks to obtain a revolving credit facility likely to be in excess of $1.5 billion, sources familiar with the situation said on Monday.
The company is self-coordinating the loan, meaning it has not appointed a bank to arrange the fund-raising exercise, said the sources. The loan would refinance existing debt.
A spokesman for the company said Majid Al Futtaim had no comment.
The shopping mall operator has a number of revolving credit facilities in place and regularly taps both the local and international bank markets.
The planned revolving credit facility - a type of loan allowing the borrower to withdraw and repay funds as and when needed - is likely to be denominated in both US dollars and UAE dirhams, said one of the sources.
Last June, Majid Al Futtaim raised a $500 million revolver with a five-year tenor, arranged by BNP Paribas, Emirates NBD and Standard Chartered Bank.
In 2013, the company raised a five-year revolver of about $1.6 billion for general corporate purposes. That loan involved ten mandated lead arrangers and three additional participating banks. It offered a margin of 200 basis points over the London interbank offered rate, according to Thomson Reuters data.
Majid Al Futtaim was in discussions with banks late last year to finance construction of the Mall of Oman, a $700 million project.
The company has a BBB rating from Fitch and Standard & Poor's.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.