Dentons advises on first green corporate sukuk issuance in the Middle East

Dentons has advised the managers on the issuance of Majid Al Futtaim’s USD600 million 4.638 per cent Green Trust Certificates due 2029 completed on May 14, 2019. This is the first green sukuk issuance by Majid Al Futtaim which intends to use the proceeds to back environmentally-friendly projects in areas such as renewable energy and sustainable water management. It is also the first corporate green sukuk issuance in the Middle East, and only the second green debt capital markets issuance in the region following the issuance by First Abu Dhabi Bank in 2017.

Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, Gulf International Bank, HSBC and Standard Chartered Bank acted as managers and book-runners on this issuance.

The green sukuk were issued under Majid Al Futtaim’s USD1.5 billion Trust Certificate programme whereby Dentons also advised the managers on the update of this programme.

Dentons Capital Markets partner Alex Roussos in Dubai commented, “This is a truly landmark transaction for the Majid Al Futtaim and the region as a whole. It is yet another example of the company blazing a trail in the Middle East for others to follow. Issuers in our region are starting to actively look into green and sustainable finance opportunities and this transaction will help the market realise that it is an area of finance that we can and must grow and support in the coming years. The success of the issuance is a result of all the hard work the company and the managers put into making the necessary adjustments to the programme documentation, putting together the company’s green finance framework and procuring the second party opinion and ESG rating, all within a very tight timeframe.”

The Dentons team was led by Alex Roussos with assistance from legal consultant Katie Phillips and trainee Niharika Khimji.