Dubai-based Majid Al Futtaim Group, which specialises in building malls and hypermarkets in the Middle East, has signed a debut $1 billion, four-year syndicated loan via bookrunner and sole underwriter Calyon, the lender said.

Proceeds will refinance existing debt and will be used for general corporate purposes.

The deal, which carries a margin of 100 basis points (bps) over Libor, is split equally between a term loan and a revolving credit and banks were invited to fund pro-rata either in dollars or dirhams.

The strategy of allowing lenders to commit to Middle Eastern loans in dollars or local currency has become common this year since there is a shortage of dollars among Gulf-based banks, stemming from the credit crisis and uncertainty over local currency pegs.

The opportunity to fund syndicated loans in dirhams allows loan lenders to sidestep the problem and open up liquidity in the region.

Founded in 1992, Majid Al Futtaim is a developer, owner and operator of retail mall space, retail franchises and associated developments in the Gulf region.