February 1, 2012: Dubai, UAE:  Majid Al Futtaim Holding LLC (MAF), the highest rated private corporate in the Middle East, announced that it has successfully priced a US$ 400 million sukuk issue on 31 January 2012.  The transaction was priced only hours after the end of the roadshow, with strong demand from regional and international investors. The sukuk was 4 times oversubscribed with over 140 orders and features well-diversified investor participation. The final distribution of the certificate was well-balanced with investors from Asia (14%), Europe (32%) and Middle East (54%). Banks accounted for 52%, fund managers 42%, and private banks the balance of 6%.

Iyad Malas, CEO of Majid Al Futtaim Holding LLC commented: "The success of our first sukuk issue demonstrates the strength of our credit story and its appeal to a broad investor base. The strong interest received from investors enabled us to raise the amount of funding, $400 million, which we had initially targeted. It represents a key undertaking for the continued growth of our business. We will continue to manage our funding profile proactively."

This transaction represents Majid Al Futtaim's first foray into the public debt market and allows Majid Al Futtaim to fulfil its objective of strategically diversifying its sources of funding and extending its liability maturity profile. This landmark transaction also marks the first issuance by a privately-held UAE-based entity in the international markets for over four years and the largest GCC corporate sukuk issuance in over a year.

The certificates will be issued under the company's $1 billion Reg S Sukuk Programme set up earlier this year. The certificates will mature in 2017 and will pay a profit rate to investors of 5.85% per annum.  Abu Dhabi Islamic Bank, Dubai Islamic Bank, HSBC Bank Plc and Standard Chartered Bank were joint lead managers and bookrunners on the transaction.

The issue was priced on the back of investor meetings undertaken in the UAE, Kuala Lumpur and London. Members of the senior management team led the roadshow, which was very well attended by both Islamic and conventional investors.

The sukuk structure follows the Wakala concept, with the Certificates being senior and unsecured obligations. Under the terms of the Certificates, Majid Al Futtaim Properties LLC is the obligor, while Majid Al Futtaim Holding is the guarantor.

Additional Information
This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or in any other jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such invitation under applicable securities laws. The securities to which this announcement relates have not been registered under the US Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act), except pursuant to registration or an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organization. Similar ratings for different types of issuers and on different types of notes do not necessarily mean the same thing. The significance of each rating should be analyzed independently from any other rating.

This release is not an invitation nor is it intended to be an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom (the "FSMA"). To the extent that this release does constitute an inducement to engage in any investment activity included within this release, it is directed only at: persons who are outside the United Kingdom; (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United Kingdom; or (iii) any other persons to whom this release for the purposes of Section 21 of FSMA can otherwise lawfully be made (all such persons together being referred to as "relevant persons"), and must not be acted on or relied upon by persons other than relevant persons. Any invitation or inducement to engage in any investment activity included within the release is available only to relevant persons and will be engaged in only with relevant persons.  Anyone other than a relevant person must not rely on this release.


For further information please contact:
Media
English:
Alex Blake-Milton
Brunswick Group
Phone:  +97144466270
Mob:  +971506947589
Email: ablakemilton@brunswickgroup.com

Katharine Crallé
Brunswick Group
Phone:  +97144466270
Mob:  +971561740292
Email:  kcralle@brunswickgroup.com

Arabic:
Nabih Tarabay
Brunswick Group
Phone:  +97144466270
Mob:  +971501519595
Email:  ntarabay@brunswickgroup.com

© Press Release 2012