Majid Al Futtaim, the Middle East region’s biggest mall operator, said Monday that it had raised a $1.25 billion revolving credit facility linked to the company’s environmental, social and governance (ESG) goals.
“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,” Ziad Chalhoub, Chief Financial Officer at Majid Al Futtaim Holding said in a statement.
The operator said in a statement that First Abu Dhabi Bank led the fundraising as sustainability coordinator and agent. The transaction is Majid Al Futtaim’s second sustainability-linked loan after the conglomerate raised a $1.5 billion sustainability-linked loan in August 2021.
“Majid Al Futtaim has set sustainability performance targets (SPTs) which will be measured on an annual basis throughout the tenor of the facility,” the conglomerate said adding that it is in line with the company’s ambitious sustainability strategy.
The sustainability-linked loan is aimed at facilitating the reduction in Majid Al Futtaim’s carbon footprint by reducing its scope 1 and scope 2 emissions and implementing LEED certification for its buildings which demonstrates the organisation’s commitment towards the environment as a socially responsible employer.
Leadership in Energy and Environmental Design (LEED) is a global green building certification. Majid Al Futtaim sold $500 million in perpetual green hybrid bonds non-callable for 5-1/4 years at 7.95% in June.
Founded in 1992, Majid Al Futtaim owns and operates 29 shopping malls, 13 hotels and four mixed-use communities across the Middle East. The company is the exclusive franchisee for Carrefour in over 30 markets across the Middle East, Africa and Asia, operating a portfolio of over 400 outlets.
