Case Studies on Islamic Finance for Asset Recycling - United Arab Emirates
This report provides reference on the case studies on UAE's islamic finance for asset recycling.
UAE's Majid Al Futtaim listed the world’s first benchmark corporate green sukuk and first green sukuk issued by a corporate in the Middle-Eastern region with the following unique features:
- Region’s first corporate green sukuk and valued at US$ 600 million;
- Investment to be used for financing existing and future green projects; and
- Issuance is a key milestone towards the retail conglomerate's 2040 net positive goals.
Majid Al Futtaim launched its first green sukuk in May 2019, raising US$ 600 million at a coupon rate of 4.637% with due date in May 2029. The second green sukuk was launched in October 2019 raising US$ 600 million at a coupon rate of 3.9325% and with due date in February 2030. Both sukuk were issued under a sukuk programme called the Majid Al Futtaim Sukuk Ltd US$ 3,000,000,000 Trust Certificate Issuance Programme.
The underlying sukuk assets in Majid Al Futtaim's sukuk included hotels (such as the Aloft Hotel and the Hilton Garden Inn), offices (such as the Majid Al Futtaim Towers in the UAE) and a number of their shopping malls (including Almaza City Center in Egypt and the Mirdif City Center in the UAE).
