Dubai – Mubasher: UAE-based shopping mall developer and operator Majid Al Futtaim has started to promote for its 10-year US dollar-denominated green sukuk at around 245 basis points over average swap rates, a document by one of the banks managing the transaction revealed on Tuesday.
The proceeds of the sukuk will support eco-friendly projects such as renewable energy and sustainable water management, according to the document.
The issuance will be of benchmark size and will not worth less than $500 million, and is expected to be price later today, the document indicated.
Majid Al Futtaim has appointed HSBC and Standard Chartered as global coordinators for the sukuk issuance, and both banks act as bookrunners along with Abu Dhabi Islamic Bank (ADIB), Dubai Islamic Bank (DIB), Emirates NBD Capital, First Abu Dhabi Bank (FAB), and Gulf International Bank.
The fixed-income green bonds are rapidly growing and they may boost the appetite for green sukuk beyond its traditional markets in Asia and the Middle East to include investors in Western countries who care about the environment.