MAF sets price for benchmark bond
Hong Kong, June 27, 2012
Initial price talk on a 7-year US dollar benchmark-sized RegS trade from UAE mall developer Majid Al Futtaim Holding (MAF) has been indicated at around 5.375 per cent as the borrower concludes its roadshow today.
MAF, the sole franchisee of French hypermarket chain Carrefour, has appointed Barclays, J.P. Morgan, National Bank of Abu Dhabi, Standard Chartered and UBS as bookrunners.
The issuer MAF Global Securities Limited is rated BBB by both Fitch and S&P and the guarantors are Majid Al Futtaim Holding and Majid Al Futtaim Properties.
The issuance is part of MAF's $2 billion medium term notes programme, which was set up last year.
The borrower raised $400 million from a 5-year bond which priced at 5.85 per cent in January, as the borrower opted out of a debut conventional bond offering due to market volatility.
MAF, which is seen as more price sensitive than other regional issuers, will be hoping to take advantage of a recent rally on Gulf bonds, particularly the high grade paper and Dubai names which has resulted in narrowing spreads and possibly more appealing pricing.-Reuters