Majid Al Futtaim (MAF) Holding LLC has successfully tightened the pricing on its $500 million benchmark bond, showcasing strong investor interest and market confidence in the company’s financial stability. The move reflects MAF’s strategic approach to capital raising and its continued prominence in the Gulf’s retail and leisure sectors.
Bond Details and Pricing Highlights
The benchmark reset subordinated Perpetual Non-Call 5.25-year bond saw its price tightened to 5.7477%, a significant reduction from initial price thoughts that hovered around 6.375%. The no-grow Reg S Eurobond is set with a yield of 5.75% and a re-offer price at par.
Investor demand for the bond exceeded expectations, with the final orderbook surpassing $1.8 billion, excluding interest from joint lead managers (JLM). The bond carries an expected BB+ rating from S&P and Fitch, and it will be listed on Euronext Dublin under the issuer name MAF Global Securities Limited.
Majid Al Futtaim’s Strong Market Presence
MAF Holding is a key player in the Gulf Cooperation Council (GCC) region, operating a wide portfolio of shopping malls, retail outlets, leisure centers, and hypermarkets. The company’s reputation for reliability and growth has made it a trusted name among investors looking for high-quality regional assets.
The bond issuance comes alongside a fixed price tender offer for the company’s outstanding $400 million reset subordinated perpetual notes, with a first call date set for 20 December 2025. MAF plans to purchase up to a maximum aggregate principal amount of $190 million of its $500 million outstanding notes. Another call date is scheduled for 30 June 2027.
Strong Backing by Leading Global Banks
The bond issuance was supported by some of the world’s top banking institutions. Citi, Goldman Sachs International, HSBC, and Standard Chartered Bank served as joint global coordinators and joint bookrunners. Additional joint bookrunners and joint lead managers included Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, JP Morgan, and Mashreq.
This robust backing highlights investor confidence in MAF’s financial strategy and its ability to execute large-scale bond offerings effectively.
Implications for Investors and the GCC Market
The tightened bond pricing demonstrates strong investor appetite for stable, yield-generating assets in the GCC region. It also reflects MAF’s commitment to maintaining a flexible and sustainable capital structure while supporting growth across its retail and leisure operations.
Investors now have an opportunity to benefit from a competitively priced bond with a yield of 5.7477%, backed by a company with a solid BBB rating and a clear strategic vision for expansion.
Outlook and Future Opportunities
With the bond offering successfully priced and backed by a significant orderbook, MAF Holding is well-positioned to continue its expansion and development projects across the GCC. The company’s careful approach to debt management and investor relations strengthens its market credibility, opening avenues for future fundraising initiatives and strategic growth.
The combination of high investor demand, competitive pricing, and strategic financial planning ensures that Majid Al Futtaim remains a leading player in the GCC’s retail and leisure investment landscape.
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