UAE Retail Giant Majid Al Futtaim Secures $1.25 Billion Sustainability-Linked Loan
Why it Matters:
Sustainability-Linked Loans (SLLs) are transforming corporate finance by tying borrowing costs directly to ESG performance. For Majid Al Futtaim (MAF), this $1.25 billion facility isn’t just capital—it’s a commitment to measurable decarbonization. As retail conglomerates face increasing pressure to address their carbon footprint, MAF is leveraging the financial markets to hedge against climate risk while lowering their cost of capital through LEED certifications and Scope 1 & 2 emission reductions.
DUBAI, UAE — Emirati retail and leisure conglomerate Majid Al Futtaim (MAF) has successfully raised a $1.25 billion revolving credit facility (RCF), structured as a sustainability-linked loan. The deal marks a significant milestone in the region’s transition toward green finance and reinforces MAF’s position as a leader in Middle Eastern ESG integration.
The fundraising was led by First Abu Dhabi Bank (FAB), acting as the sustainability coordinator and agent. This is the second time the conglomerate has tapped the SLL market, following a $1.5 billion sustainability-linked loan closed in August of last year.
Measurable ESG Targets
Unlike traditional green bonds which are tied to specific projects, this SLL is tied to MAF’s overall corporate sustainability performance. The company has established Sustainability Performance Targets (SPTs) that will be measured on an annual basis throughout the tenor of the facility. Key objectives include:
- Emission Reductions: Drastic cuts to the company’s Scope 1 and Scope 2 emissions.
- Green Building Standards: The implementation of LEED certification across its extensive portfolio of shopping malls.
A Pattern of Sustainable Finance
MAF has been aggressive in its pursuit of sustainable capital. In addition to this $1.25 billion loan, the group raised $500 million through perpetual green bonds in June to refinance existing hybrid instruments.
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This financial strategy aligns with the broader regional push for renewable energy, including the recent agreement between the UAE and Egypt to build one of the world’s largest wind farms.
By aligning its balance sheet with environmental outcomes, Majid Al Futtaim is providing a blueprint for how large-scale retail operators can manage the “Green Transition” while maintaining liquidity in a volatile global market.
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