Majid Al Futtaim has signed its second sustainability-linked loan (SLL) structured as a $1.25bn revolving credit facility (RCF) led by First Abu Dhabi Bank (FAB). The SLL aims to facilitate the reduction in the company’s carbon footprint.
This initiative positions Majid Al Futtaim as the region’s largest SLL borrower and continues to be the region’s only ‘penalty-only’ borrower.
“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,” said Ziad Chalhoub, Chief Financial Officer at Majid Al Futtaim Holding.
“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 and Global Head of Government, Sovereigns and 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.”
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