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MAF opens books on hybrid bond issue

London, October 22, 2013

Majid Al Futtaim (MAF) has opened books on its upcoming issue of a US dollar-denominated hybrid bond, according to one of the lead managers.

The company has set initial price thoughts of low- to mid-7 per cent for the perpetual note, which will be callable after five years.

The coupon on the note will step up by 25bp in year 10 and by an additional 75bp in year 25, according to the proposed terms.

The upcoming bond, which will become the Gulf's first international hybrid to be issued by a corporate borrower, is expected to price as early as Wednesday, according to the lead manager.

The issuer hosted investor calls on Monday and Tuesday, as it revived a transaction it originally marketed in May but was forced to delay due to adverse market conditions.

Goldman Sachs and HSBC are structuring advisors on the deal, and are joined by Bank of America Merrill Lynch, Emirates NBD Capital, JP Morgan and Standard Chartered as joint bookrunners.

The Reg S-only notes are expected to be rated BB+ and to receive a 50 per cent equity credit by both Standard & Poor's and Fitch. The issuer is rated BBB/BBB by the same agencies. - Reuters




Tags: MAF | bond | hybrid | issue |

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