UAE - Mubasher: Majid Al Futtaim has been granted a $1.5 billion (AED 5.51 billion) sustainability-linked loan (SLL), which supports environmentally and socially sustainable economic activities.
Structured as a revolving credit facility (RCF), the five-year loan is the largest corporate and non-government-linked SLL in the region and the largest in the MENA real estate sector, according to a press release on Thursday.
The SLL has also placed Majid Al Futtaim as the first privately-owned Dubai corporation to borrow through this innovative facility.
As part of its objective, the group seeks to make all its malls the first in the region to receive certified LEED Gold.
Standard Chartered Bank acted as sustainability coordinator on the loan.
The Chief Financial Officer of Majid Al Futtaim Holding, Ziad Chalhoub, said: "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."
The Regional Head of Client Coverage MENA at Standard Chartered Bank, Mohamed Salama, commented: "As a regional leader in sustainable finance and given our own commitment to be Net Zero across all our activities by 2050, we are committed to supporting our clients, like Majid Al Futtaim, to deliver on their sustainability objectives by structuring innovative solutions."
