United Arab Emirates mall operator Majid Al Futtaim had set a maximum deal volume of USD500 million for a new hybrid bond according to a source familiar with the transaction. According to the lead, the order book on the deal now stands at USD1 billion.
The bond note would be callable after five years and the pegged price is expected to be done by Wednesday. According to estimates, the initial projected price would be between 7.5% to 7.9%.
The mall operator, which is rated at BBB-/BBB-, had received investor calls on the bond in the past few days. The company undertook roadshows in May but held back the launch of the bonds in the market due to unfavorable market conditions in the region.
The advisors for the bond issue are Goldman Sachs and HSBC while joint bookrunners are Bank of Americal Merrill Lynch, Emirates NBD Capital, Standard Chartered Bank and JPMorgan Chase.
The issued Reg-S only notes are projected to be rated at BB+ and would receive 50% equity credit from both Fitch Ratings and Standard & Poor's.
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