Majid Al Futtaim said to raise $400m at 5.85pct yield | Alrroya

Majid Al Futtaim Holding LLC, the Dubai-based operator of Carrefour SA stores in the Middle East, raised $400 million from the sale of Islamic bonds, two bankers familiar with the matter said.

The bonds were priced to yield 5.85 per cent, they said, declining to be identified because the details are private. The yield on developer and mall operator Emaar Properties PJSC’s 8.5 per cent sukuk maturing in August 2016 was little changed at 7.7 per cent at 4:07pm in Dubai. The rate on the Dubai government’s non-rated 6.396 per cent due November 2014 was at 5.22 per cent.

Non-Islamic issuers are tapping the Islamic bond market as demand for Shariah-compliant bonds lowered borrowing costs in the six-nation Gulf Cooperation Council. Abu Dhabi’s First Gulf Bank PJSC and Saudi Arabia’s General Authority of Civil Aviation sukuk offerings lifted sales to $5.3 billion this month compared with $500m in the same month last year.

* username: rupertbu