Bloomberg News

Majid Al Futtaim Plans $500 Million Loan to Fund Mall of Egypt

March 12, 2012

Majid Al Futtaim Holding LLC, the operator of malls and hotels in the Middle East, has mandated two banks to raise a loan of about $500 million in Egyptian pounds to fund its Mall of Egypt development.

“The money is earmarked for the Mall of Egypt,” the company’s treasury manager Daniele Vecchi said in a telephone interview from Dubai today. “When the mall project is activated” possibly before the end of year “we’ll need to finalize the funding,” he said.

Reuters reported earlier today that the company mandated Banque Misr SAE and National Bank of Egypt as lead arrangers for the deal, which Vecchi declined to confirm. The operator of Carrefour SA (CA) stores in the region has no immediate plans to tap bond markets because the Dubai-based company has an “amazingly strong liquidity position,” Vecchi said.

Majid Al Futtaim sold a $400 million Islamic bond in January. The yield on its 5.85 percent sukuk due February 2017 fell 39 basis points since it began trading last month to 5.26 percent today.

To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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