- This is Majid Al Futtaim’s second SLL in line with global best practices and further demonstrates the Company's strong commitment towards Sustainability
- Majid Al Futtaim remains the only borrower in the region with a "penalty-only" loan structure
Dubai, United Arab Emirates: Majid Al Futtaim, the leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa and Asia, has successfully signed its second Sustainability-Linked Loan (SLL), structured as a USD 1.25 billion Revolving Credit Facility (RCF) linked to the Company’s environmental, social and governance (ESG) related targets.
First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, led the transaction as Sustainability Coordinator and Agent. In line with Majid Al Futtaim's ambitious sustainability strategy, the company has set Sustainability Performance Targets (SPTs) which will be measured on an annual basis throughout the tenor of the facility.
The SLL aims to facilitate the reduction in Majid Al Futtaim’s carbon footprint by reducing its Scope 1 & Scope 2 emissions and implementing LEED certification for its buildings as well as improving gender diversity within the organisation demonstrating its commitment towards the environment as a socially responsible employer. The facility positions Majid Al Futtaim as the largest SLL borrower in the region and the company continues to be the region's only "penalty-only" borrower, demonstrating the Company’s commitment to achieving real, tangible sustainability targets.
Ziad Chalhoub, Chief Financial Officer at Majid Al Futtaim Holding, said: “Sustainable finance options are a vital solution in the quest to ensure the private sector creates a resilient economy and supports development that meets the needs of the present without compromising the future. Today’s announcement maintains Majid Al Futtaim’s long-held commitment to becoming one of the most sustainably considerate companies regionally and globally. Through the new SLL, we are further extending our accountability in how we finance our operational and capital expenditures across the Group. As our second such SLL signed in as many years, we are aligning our actions with our long-term strategic target of reaching a Net Positive business model by 2040.”
Mustafa Al Khalfawi, Head of Global Banking UAE & Global Head of Government, Sovereigns & Public Sector at FAB, said: “We are proud to lead this transaction with Majid Al Futtaim and to support a key UAE entity in achieving its ambitious sustainability targets. FAB is the region’s leading bank for unlocking innovative sustainable finance solutions, having issued the first green bond in the GCC in 2017 and as the first UAE bank to commit to achieving net-zero greenhouse gas emissions across our operations and portfolio. There is strong and growing demand for sustainability-linked banking facilities from UAE and GCC corporates, and we are working closely with our clients to drive positive environmental outcomes.”
The facility is structured on the basis of three Key Performance Indicators (KPIs) which will be independently assessed on an annual basis. The KPIs for the facility are ambitious and core to Majid Al Futtaim’s operations and in line with Sustainability Linked Loan Principles as published by the Loan Market Association (LMA) as follows:
- Reducing the Scope 1 and 2 emissions intensity of Majid Al Futtaim’s property portfolio, calculated as tCO 2 e/managed sqm, in line with the Company’s science-based targets (SBTi) towards net positive by 2040
- Having all its malls certified LEED Gold or equivalent or better by 2026. In addition, the Company has set a target of increasing the number of malls in Majid Al Futtaim’s portfolio with a LEED Platinum or equivalent rating by 2027
- Achieving 32% of women in the top 3 seniority levels (board, senior executive and senior management) by 2027, exceeding the previous 30% target set on the Company’s existing SLL
Majid Al Futtaim has a long history of working towards the effective and efficient management of resources. In 2018, as a part of the company-wide sustainability strategy, Dare Today, Change Tomorrow, Majid Al Futtaim established three focus areas: Transforming Lives, Rethinking Resources, and Empowering Our People. In 2020, the Company launched its Company-wide Circular Economy Strategy to reduce environmental impact further, aiming by 2030 to have all Majid Al Futtaim businesses operating with circularity at the core.
FAB aligns the UAE’s vision to promote sustainable economic growth and the UAE Net-Zero by 2050 initiative. In October 2021, FAB became the first UAE and GCC bank to join the Net-Zero Banking Alliance (NZBA), reinforcing the bank’s status as a pacesetter for climate action in the financial sector. FAB continues to lead through proactive engagement and partnerships with customers, clients, and the UAE government and regulators, to enable them to move faster towards achieving their climate goals.
About Majid Al Futtaim
Founded in 1992, Majid Al Futtaim is the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia.
A remarkable business success story, Majid Al Futtaim started from one man’s vision to transform the face of shopping, entertainment and leisure to ‘create great moments for everyone, every day’. It has since grown into one of the United Arab Emirates’ most respected and successful businesses spanning 17 international markets, employing more than 45,000 people, and obtaining the highest credit rating (BBB) among privately held corporates in the region.
Majid Al Futtaim owns and operates 29 shopping malls, 13 hotels and four mixed-use communities, with further developments underway in the region. The shopping malls portfolio includes Mall of the Emirates, Mall of Egypt, Mall of Oman, City Centre malls, My City Centre neighbourhood centres, and five community malls which are in joint venture with the Government of Sharjah. The Company is the exclusive franchisee for Carrefour in over 30 markets across the Middle East, Africa and Asia, operating a portfolio of more than 400 outlets including City+, the region’s first checkout-free store, and an online store.
Majid Al Futtaim operates more than 600 VOX Cinemas screens as well as a portfolio of world-class leisure and entertainment experiences across the region including Ski Dubai, Ski Egypt, Dreamscape, Magic Planet, Little Explorers and iFLY Dubai. The Company is parent to a Fashion, Home and Specialty retail business representing international brands such as Abercrombie & Fitch, Hollister, AllSaints, lululemon athletica, Crate & Barrel, LEGO and THAT, a Majid Al Futtaim fashion concept store and app. In addition, Majid Al Futtaim operates Enova, a facility and energy management company, through a joint venture operation with Veolia, a global leader in optimised environment resource management.
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About First Abu Dhabi Bank (FAB)
FAB is the UAE’s largest bank and one of the world’s largest and safest financial institutions. FAB’s focus is to create value for its employees, customers, shareholders and communities to grow through differentiation, agility and innovation.
Headquartered in Abu Dhabi, the bank’s international network spans five continents, providing global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is a trusted adviser and regional partner to major institutions, emerging companies and individuals seeking to do business in the UAE, the MENA region and beyond. As an engine of growth for the region, it helps customers to thrive and grow stronger by managing risk, providing access to capital and facilitating trade flows across developed and emerging markets.
With total assets of over AED 1.1 Trillion (USD 312 Billion) as of September-end 2022, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively - the strongest combined ratings of any bank in the MENA region. The Bank has been ranked by Global Finance as the Safest Bank in the UAE and the Middle East since 2011, and #31 Safest Bank globally in 2022. The Banker’s Top 1000 World Banks 2021 rankings, measured by Tier 1 capital, ranked FAB as #1 in the UAE, #3 in the Middle East and #91 across the globe. FAB is also a regional sustainability leader (MSCI ESG rating of AA, ‘Leader’ category), and a constituent of MSCI ESG Leaders and FTSE4Good EM indices.
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