UAE’s largest retailer Majid Al Futtaim secures first ESG loan of $1.5bn as a part of its sustainability strategy

    04 Sep 2021

    Retail giant Majid Al Futtaim (MAF) secured its first sustainability-linked loan with a value of 5.51 billion dirhams ($1.5 billion), said in a statement on August 31.

    The UAE-based retailer said the loan is part of its sustainability strategy, as it aims to facilitate and support environmentally and socially sustainable economic activity and growth.

    “The signing of our first sustainability-linked loan comes as a result of, and in line with, our long-term strategic targets, including the production of more energy and water than we consume, reaching a net positive business model by 2040,” Ziad Chalhoub, MAF’s chief financial officer, said.

    The five-year SLL is structured as a revolving credit facility, which MAF says is “the largest corporate, non-government-linked SLL in the region and the largest in the Middle East and North Africa region real estate sector,” with over a dozen banks participating in the syndicate, according to the statement.

    It added that the loan also includes a gender diversity target for women to constitute 30%of board members and senior management roles.

    An SLL is a financial instrument that supports companies’ environmental, social, and governance-related performance.

    Standard Chartered said in a separate statement on Thursday that it acted as sole sustainability coordinator on the retailer’s inaugural $1.5 billion SLL.

    You may read why upcycling has become the primary trend of 2021 here.

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