Majid Al Futtaim (MAF) Holding, the sole franchisee for hypermarket chain Carrefour  in the Gulf, has picked four banks to set up a $1 billion Islamic bond programme, a prospectus issued by the Dubai-based mall developer showed.

Local lenders Dubai Islamic Bank and Abu Dhabi Islamic Bank join HSBC and Standard Chartered  on the programme, according to the prospectus dated January 6.

Reuters reported in October that HSBC and Standard Chartered would arrange the documentation for a planned Islamic bond, or sukuk, programme and create a process for other banks to pitch for lead manager slots at a future date.

MAF, which completed roadshows for a conventional offering from its $2 billion medium term notes programme in June, chose not to issue a bond because of unfavourable market conditions.

The company has been eyeing global debt markets for several months, and has set up a sukuk programme to have the option to tap Islamic liquidity and healthy demand for Islamic assets amid ongoing global risk aversion.

In November, a senior executive said the eventual sukuk would be between $350 million and $500 million carry a five-year tenor. - Reuters