Majid Al Futtaim Successfully Prices USD 500 Million Sukuk, Marking Strategic Return to International Debt Markets
20 Oct 2025
Dubai, UAE – 20 October 2025 – Majid Al Futtaim, a leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia, has successfully issued a USD 500 million 10-year Sukuk, marking its return to the international debt capital markets after a two-year hiatus.
The issuance achieved a profit rate of 4.875% and was met with exceptional investor demand, with the orderbook peaking in excess of USD 2 billion - more than four and a half times the issue size. This strong appetite from diversified, high-quality real money accounts underscores the company’s robust credit fundamentals and the continued confidence placed in it by the global investment community.
International investors represented 45% of the total transaction allocation, while regional investors from the Middle East accounted for the remaining 55%, reflecting broad-based support across geographies and investor types.
Majid Al Futtaim’s adoption of intraday execution reflects emerging best practices among high-profile Sukuk issuers, particularly in response to increased daily market volatility. The transaction also achieved the company’s tightest-ever 10-year spread over Treasuries at 95 basis points, highlighting efficient execution and competitive pricing.
Ahmed Galal Ismail, Chief Executive Officer of Majid Al Futtaim Holding said, “The successful issuance of our latest Sukuk underscores the enduring strength of Majid Al Futtaim’s credit profile and the continued confidence placed in us by the global investment community. The transaction was met with exceptional demand and culminated in the tightest 10 year spread ever achieved by the Group, a clear reflection of our prudent financial management and the depth of investor engagement. This landmark issuance reaffirms our strategic vision and positions Majid Al Futtaim as a benchmark corporate issuer in the Sukuk market.”
Proceeds from the issuance will be used to redeem an upcoming Sukuk maturity in November 2025, further reinforcing the company’s commitment to proactive liability management.
HSBC and Standard Chartered acted as Joint Global Coordinators, as well as Joint Lead Managers and Bookrunners. They were joined in the transaction by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, GIB Capital, and Intesa San Paolo, who served as Joint Lead Managers and Bookrunners. Bank ABC participated as a Co-Lead Manager.
Majid Al Futtaim continues to maintain a balanced debt profile and healthy liquidity, with coverage for more than four years of net financing needs through its cash and available committed lines. With a proven track record of resilience, robust governance, and strong cash generation, the company remains well-positioned to deliver long-term, sustainable value to stakeholders through disciplined growth, strategic diversification, and continued investment in high-quality assets.
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