Majid Al Futtaim raises $1.25b sustainability-linked loan

Emirati retail conglomerate Majid Al Futtaim said on Monday it had raised a $1.25 billion revolving credit facility linked to the company’s environmental, social and governance (ESG) goals.

First Abu Dhabi Bank led the fund raising, the conglomerate’s second sustainability-linked loan, as sustainability coordinator and agent.

Majid Al Futtaim (MAF), which operates malls across the Middle East, “has set sustainability performance targets (SPTs) which will be measured on an annual basis throughout the tenor of the facility,” it said.

Ziad Chalhoub, chief financial officer at Majid Al Futtaim Holding, said sustainable finance options are a vital solution in the quest to ensure the private sector creates a resilient economy and supports development that meets the needs of the present without compromising the future.

"Today’s announcement maintains Majid Al Futtaim’s long-held commitment to becoming one of the most sustainably considerate companies regionally and globally. Through the new SLL, we are further extending our accountability in how we finance our operational and capital expenditures across the Group. As our second such SLL signed in as many years, we are aligning our actions with our long-term strategic target of reaching a Net Positive business model by 2040,” he said.

The loan aims to cut MAF’s Scope 1 and 2 emissions and implement LEED certification for its malls, the company said.

— With inputs from Reuters