UAE's Majid Al Futtaim lists world's first green sukuk on Nasdaq Dubai
CEO Alain Bejjani says $600m sukuk will support Majid Al Futtaim's drive to "address the implications of climate change"
UAE conglomerate Majid Al Futtaim has listed a 10-year corporate 'green' sukuk worth $600m (AED2.2bn) on Nasdaq Dubai, making it the world’s first financial instrument of its kind to focus on sustainability-focused investments.
The investment will be channelled to finance and refinance Majid Al Futtaim's ongoing and planned 'green' projects, including sustainable buildings, renewable energy, sustainable water management, and energy efficiency.
As part of its preparations to list the green sukuk, the family-owned group established a Green Finance Framework and a Green Finance Steering Committee in April 2019.
The programmes had been introduced to oversee Majid Al Futtaim’s selection of projects for the green portfolio.
Commenting on the development, chief executive officer of Majid Al Futtaim, Alain Bejjani, said: “This issuance will enable Majid Al Futtaim to deliver more sustainable experiences for our customers and to address the implications of climate change.
“As we progress on our sustainability journey, we are extremely proud to list the world’s first benchmark corporate green sukuk, and look forward to identifying and pioneering innovative ways to meet our ambition to be Net Positive by 2040,” added Bejjani.
HE Essa Kazim, governor of Dubai International Financial Centre and chairman of Dubai Islamic Economy Development Centre, added: “Majid Al Futtaim’s green sukuk listing reflects the forward-looking and progressive outlook of Dubai’s leading businesses and the vitality of its capital markets infrastructure."