UAE’s Majid Al Futtaim to raise up to $650m in green sukuk

Majid Al Futtaim started marketing the 10-year paper earlier on Tuesday at about 245 basis points over mid-swaps. (File/AFP)
Updated 07 May 2019

UAE’s Majid Al Futtaim to raise up to $650m in green sukuk

  • The proceeds of the sukuk, which will be priced later on Tuesday, will back environmentally-friendly projects in areas such as renewable energy
  • Green bonds are a growing category of fixed-income securities

DUBAI: Majid Al Futtaim, a UAE-based developer and shopping mall operator, is set to raise between $500 million and $650 million in “green” sukuk, or Islamic bonds, a document by one of the banks leading the deal showed on Tuesday.
The proceeds of the sukuk, which will be priced later on Tuesday, will back environmentally-friendly projects in areas such as renewable energy and sustainable water management, according to an earlier document drawn up by the lead bank.
Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of sukuk beyond its traditional markets in Asia and the Middle East to include ethical investors in Western countries.
Majid Al Futtaim started marketing the 10-year paper earlier on Tuesday at about 245 basis points over mid-swaps.
The price guidance for the deal — which has so far attracted around $2.7 billion in orders — subsequently went down to around 225-230 basis points over mid-swaps, according to the document.
HSBC and Standard Chartered have been hired as global coordinators for the planned deal, and they are working as bookrunners along with Abu Dhabi Islamic Bank , Dubai Islamic Bank, ENBD Capital, First Abu Dhabi Bank, and Gulf International Bank.


Libyan state oil firm warns against export blockade

Updated 18 January 2020

Libyan state oil firm warns against export blockade

  • The NOC issued a statement saying it “strongly condemns calls to blockade oil ports ahead of the Berlin Conference on Sunday”
  • Tribes close to eastern Libya-based military strongman Khalifa Haftar had called for a blockade of coastal oil export terminals

TRIPOLI: Libya’s National Oil Company warned Friday against threats to block oil exports, the war-torn country’s main income source, two days before a Berlin conference aimed at relaunching a peace process.
Tribes close to eastern Libya-based military strongman Khalifa Haftar had called for a blockade of coastal oil export terminals to protest a Turkish intervention against Haftar in the country’s grinding conflict.
The NOC later issued a statement saying it “strongly condemns calls to blockade oil ports ahead of the Berlin Conference on Sunday.”
Turkey has backed the Tripoli-based Government of National Accord as it faces an offensive by Haftar’s forces to seize the capital from what he calls “terrorists” supporting the GNA.
After months of combat, which has killed more than 2,000 people, a cease-fire came into effect Sunday backed by both Ankara and Moscow, which is accused of supporting Haftar.
However, after Turkey deployed troops to support the United Nations-recognized GNA, tribes close to Haftar threatened to close down the “oil crescent” — a string of export hubs along Libya’s northeastern coast under Haftar’s control since 2016.
His troops have also mobilized to block any counter-attack on the oil crescent, the conduit for the majority of Libya’s crude exports.
“The closure of the fields and the terminals is purely a popular decision. It is the people who decided this,” spokesman for pro-Haftar forces Ahmad Al-Mismari told Al-Hadath television late Friday.
The tribes also called for the “immediate” closure of the Mellitah, Brega and Misrata pipelines.
The head of the eastern Zouaya tribe told AFP that blocking exports would “dry up the sources of funding for terrorism via oil revenues.”
NOC chairman Moustafa Sanalla said the oil and gas sector is “vital” for the Libyan economy, as it is the “single source of income for the Libyan people.”
“The oil and the oil facilities belong to the Libyan people. They are not cards to be played to solve political matters,” he added.
“Shutting down oil exports and production will have far-reaching and predictable consequences.”
The oil-rich North African state has been in turmoil since a 2011 NATO-backed uprising that overthrew and killed dictator Muammar Qaddafi.
Its oil sector, which brings in almost all of the state’s revenues, has frequently been the target of attacks.
Sanalla said the consequences of exports and production being shut down for an extended period could be devastating.
“We face collapse of the exchange rate, a huge and unsustainable increase in the national deficit, the departure of foreign contractors, and the loss of future production, which may take years to restore,” he said.
“This is like setting fire to your own house.”