Clifford Chance advises Majid Al Futtaim on hybrid issuance

Clifford Chance has advised Majid Al Futtaim Holding LLC (Majid Al Futtaim) in relation to the issuance of USD500 million reset subordinated perpetual notes (the Notes) by MAF Global Securities Limited, irrevocably guaranteed on a joint and several basis by Majid Al Futtaim and Majid Al Futtaim Properties LLC.

This issuance marks the second issuance of hybrid notes by Majid Al Futtaim. Hybrid issuances by corporates are relatively rare in the region – Majid Al Futtaim’s last hybrid issuance in 2013 was one of the first international hybrid bond issuances by a regional corporate borrower.

The Notes qualify for 50 per cent equity credit from each of Fitch and Standard & Poor’s and are callable at 5.5 years (with interest step-ups at 5.5 years, 10.5 years and 25.5 years if the Notes are not called). Interest payments can be optionally deferred at Majid Al Futtaim’s discretion (subject to certain conditions). The Notes were issued on March 7, 2017 and will be admitted to trading on the regulated market of the Irish Stock Exchange.

The Clifford Chance team was led by Stuart Ure (partner), who was assisted by Alekhya Prakash (senior associate) and Julian Walley (associate), based in Dubai.

Barclays, Goldman Sachs International, HSBC and Standard Chartered Bank acted as Global Co-ordinators and Structuring Advisors and, together with Emirates NBD Capital and National Bank of Abu Dhabi, acted as the Joint Lead Managers and Joint Bookrunners for the issuance.