Dubai-based shopping mall operator Majid Al Futtaim (MAF) has secured its first sustainability-linked loan (SLL) of $1.5 billion dirhams.
The five-year financing, which is structured as a revolving credit facility, is “the largest corporate, non-government-linked SLL in the region”, the company said. It is also considered the largest in the real estate sector in the Middle East and North Africa (MENA).
The facility is designed to link with the company’s environmental, social and governance (ESG) performance.
The agreement includes a gender diversity target for women to constitute 30 percent of board members and senior management roles.
“The signing of our first sustainability-linked loan comes as a result of, and in line with, our long-term strategic targets, including the production of more energy and water than we consume, reaching a net positive business model by 2040,” said Ziad Chalhoub, chief financial officer of Majid Al Futtaim Holding.
As part of the SLL, Majid Al Futtaim plans to have all its malls certified LEED Gold or better. A LEED certification provides independent verification of a building or neighborhood’s green features.
In its latest sustainability report published in June, the company said it has achieved 97 percent of the targets set out in its annual sustainability strategy last year, despite the business and economic disruption brought about by the pandemic.
(Writing by Brinda Darasha; editing by Cleofe Maceda)
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