MAF still plans to issue hybrid bond
Dubai, July 25, 2013
Dubai mall developer Majid Al Futtaim (MAF) said on Thursday that it still plans to issue a hybrid bond that will partly fund its recent buyout of French retailer Carrefour's stake in a joint venture.
MAF delayed plans to raise at least $500 million from the hybrid bond in June due to market volatility.
"The market conditions in the last few weeks have been volatile and we are waiting for a receptive window for this issuance," said Iyad Malas, chief executive of MAF in an emailed statement announcing the company's first-half earnings.
"There is no change to our intention to issue the hybrid security."
MAF hired banks to partly finance the $683 million acquisition of Carrefour's 25-per cent stake in a joint venture through a hybrid bond issue, which combines elements of both debt and equity.
Financing an acquisition through the issuance of a hybrid bond would be the first such transaction in the region.
Unlisted MAF reported a first half revenue of 11.3 billion dirhams, up 10 per cent from the corresponding period in 2012. - Reuters