A year after it called off its maiden conventional bond issue in the international market, Dubai's Majid Al Futtaim Holding is trying again. This time, stronger global demand for Gulf debt, and better investor sentiment towards Dubai in particular, mean a much smoother ride for MAF.
The shopping mall developer is eyeing a seven-year, $500 million conventional bond, longer than the five-year tenor favoured in the region. It released price guidance at 5.375 percent on Wednesday.
It tapped the global market with a $400 million, five-year sukuk (Islamic bond) in February at 5.85 percent. The sukuk has since rallied to yield 4.47 percent on Wednesday - meaning the company is offering about 90 basis points for an additional 2-1/2 years with its conventional bond. That is seen as an ample premium by many potential investors.
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