Majid Al Futtaim rules out bond issue
Dubai, June 30, 2011
Majid Al Futtaim Holding (MAF), a leading UAE-based mall developer, which began investor meetings last week, will not after all issue a bond due to market volatility, sources said.
MAF, which is also the sole franchisee for French hypermarket chain Carrefour in the Gulf, set up a $2 billion bond programme in June, said a report in our sister publication, the Gulf Daily News.
It would have been the first private corporate issuer from Dubai to market an international bond since the emirate's debt crisis in 2009.
"Markets are definitively not conducive as volatility is extremely high," said a source.
Two fixed-income market sources said MAF would, at the minimum, have to price wider than the Dubai sovereign, which came in at 375 basis points over midswaps earlier this month.
The UAE's Dolphin Energy said it would delay issuing one until market conditions improved. – TradeArabia News Service