Font Size

- Aa +

Tue 14 Jun 2011 08:19 AM

Font Size

- Aa +

MAF Holding plans up to $4bn bond programme

Firm behind three of Dubai’s biggest malls eyeing bond, say banking sources

MAF Holding plans up to $4bn bond programme
Majid Al Futtaim Properties is the developer behind three of Dubais largest malls

Dubai's Majid Al Futtaim Holding, sole franchisee of hypermarket chain Carrefour in the Gulf, plans to set up a medium term notes programme, potentially worth up to $4bn, two sources said. Standard Chartered and Barclays have been picked to arrange the bond programme, said the sources who are familiar with the discussions.

"Majid al Futtaim is establishing a programme within the next five days that will be somewhere between $2bn and $4bn," said one of the sources, speaking on condition of anonymity.

"They will likely then consider when to launch a bond from that based on when the Dubai government comes out."

Dubai's government is conducting a road show for a potential bond this week.

A second source added that the company, one of the largest mall developers in the Gulf, was establishing a conventional bond programme. Both sources confirmed that Standard Chartered and Barclays were arranging banks.

Daniele Vecchi, senior vice president for treasury at MAF, said on Monday the company was working on establishing a bond programme but declined to elaborate.

MAF's primary subsidiary is MAF Properties, which develops and manages shopping malls, hotels and master-planned communities across the Gulf. It plans to spend $3.5bn up to 2015 on four new malls.

MAF Holding said earlier this month it would press ahead with its planned expansion in Egypt following a meeting with the country’s Prime Minister Essam Sharaf.

The developer operates two shopping malls and eight Carrefour supermarkets in the country through its real estate arm. The malls mark an investment of EGP 2.5bn.

MAF Properties is scheduled to open its third mall in Egypt in 2014.

For all the latest banking and finance 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.