July 5 (Bloomberg) -- Majid Al Futtaim Holding LLC, the Dubai-based owner of the City Center shopping malls, delayed plans to sell bonds until it can secure a better price.
“The interest in the company is great, but at the moment the price isn’t matching what we had in mind,” Daniele Vecchi, group treasurer for the company, said in a phone interview today. “We will always be open to a transaction at the right price.” The company planned to sell five-year bonds to help refinance borrowings and fund expansion, Vecchi said last month.
Majid Al Futtaim announced a $2 billion medium-term note program on June 14, filing a prospectus with the London Stock Exchange. Standard & Poor’s assigned the company a rating of BBB, the second-lowest investment grade ranking. Five-year U.S. interest rate swaps rose 29 basis points to 2.038 percent on July 4 from the year’s low on June 24 on concern about a Greek debt default. The rate eased to 2.02 percent today.
“We are watching the market and we will be printing a bond only at the right price,” Vecchi said, declining to specify what constitutes the right price.
The builder and owner of shopping malls across the Middle East plans to invest $3.5 billion expanding in Egypt, Lebanon, Syria and the United Arab Emirates. Its shopping mall in Beirut will be completed in October 2012 and it is proceeding with plans to build a mall in Cairo at a cost of 2.8 billion dirhams ($762 million).
Barclays Capital, Emirates NBD PJSC and Standard Chartered Plc were to arrange the transaction.
--Editors: Shanthy Nambiar, Inal Ersan
To contact the reporter on this story: Zainab Fattah in Dubai on firstname.lastname@example.org; Arif Sharif in Dubai at email@example.com
To contact the editor responsible for this story: Andrew Blackman at firstname.lastname@example.org