Majid Al Futtaim Holding, a Dubai-based conglomerate, which holds the franchise for French supermarket chain Carrefour in the GCC, as well as having interests in real estate development, facilities management, leasing and leisure & entertainment, is to launch a Sukuk program.
The move, according to Daniele Vecchi, senior VP for MAF who was talking to local news sources at an event in Abu Dhabi, has been prompted as the firm finds it difficult to raise finance through the conventional route as market volatility and uncertainty abounds.
Vecchi told reporters that the firm was opting for Sukuk as there was a lot of liquidity in the local market looking for Shari'ah compliant issues, and that the Sukuk route was a more stable option for MAF.
The company had tried to raise $2bn in a conventional medium-term notes program earlier in the year, but despite undertaking a roadshow to promote the bond, had withdrawn the notes before issue due to poor market conditions.
The firm had raised $1bn in July to refinance existing debt and create a pool of capital for business operations.
Vecchi did not tell reporters how big the Sukuk MAF was preparing would be, nor did he give an anticipated date of issue. MAF did not respond to a request comment from The Islamic Globe.
© The Islamic Globe 2011
