Sunday, Jul 24, 2011
(Recasts. Adds quotes from treasurer and analyst in paragraphs 3, 4, 5, 6 and 7; loan details in paragraph 9.)
DUBAI (Zawya Dow Jones)--Dubai-based Majid Al Futtaim Holding, or MAF, remains keen on issuing bonds once market conditions improve, its treasurer said Sunday, even after raising $1 billion via a club financing deal that will be partly used for refinancing an existing facility and to boost the group's liquidity.
MAF, a privately-owned property, hospitality and retail group active in the Middle East and North Africa region, in June established a $2 billion global medium term note program but hasn't issued any bonds as part of it. The group, like several other U.A.E. companies that were planning to tap the bond market, has delayed its plans due to global market uncertainty.
"We are still keen to do a transaction but we want to do it in line with commercial terms that reflect the creditworthiness of our company and the performance of our businesses," MAF treasurer Daniele Vecchi told Zawya Dow Jones.
Other entities in the Gulf such as Abu Dhabi's Dolphin Energy and the Tourism Development Investment Co. have also delayed bond sales.
"Conditions in the debt capital markets have been very challenging indeed recently and hence it is possible that the attainable deal size or pricing wasn't in line with MAF's expectations," said Chavan Bhogaita, head of markets strategy department at National Bank of Abu Dhabi.
"Bond issues from solid 'non-GRE' credits such as MAF would certainly help to add further depth to the regional bond markets," he added.
MAF earlier Sunday said, in an emailed statement, that it had raised $1 billion via a club financing deal. The group said the oversubscribed transaction consists of two tranches--a three-year revolver facility and a five-year term loan.
"The proceeds will be used for early refinancing of the $1 billion syndication maturing in July 2012, which is currently 50% utilized, and also for building the company's liquidity buffer in line with its internal policies," the group said.
Barclays Bank, Credit Agricole Corporate and Investment Bank, Emirates NBD and Standard Chartered Bank were the mandated lead arrangers on the transaction, MAF said. The margin on the revolver part is 250 basis points above the London interbank offered rate, or Libor, while the term loan carries 275 basis points above the benchmark rate, Vecchi said.
Other participating lenders were Union National Bank, Arab Bank, National Bank of Abu Dhabi, Samba Financial Group, Mashreq Bank, Abu Dhabi Commercial Bank, National Bank of Kuwait and AK Bank, according to the statement.
-By Oliver Klaus and Nicolas Parasie, Dow Jones Newswires; +9714 446-1693; oliver.klaus@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
24-07-11 0911GMT
