Shopping malls operator Majid Al Futtaim (MAF) has secured a $1.25 billion sustainability-linked loan (SLL) to support its environmental, social and governance (ESG) ambitions.
The second SLL in many years has already been successfully closed with First Abu Dhabi Bank (FAB) leading the transaction as coordinator and agent, the company said in a statement on Monday.
The revolving credit facility is linked to MAF’s ESG-related targets and is expected to help the mall developer reduce the carbon footprint of its property portfolio and have its malls certified LEED Gold or equivalent by 2026.
MAF also seeks to utilise the funds to develop more malls that have LEED Platinum or equivalent rating by 2027 and further improve gender diversity within the company.
With the deal, the company maintains its commitment to becoming “one of the most sustainably considerate companies regionally and globally”, according to Ziad Chalhoub, Chief Financial Officer at MAF Holding.
“Through the new SLL, we are further extending our accountability in how we finance our operational and capital expenditures across the group. As our second such SLL signed in as many years, we are aligning our actions with our long-term strategic target of reaching a net positive business model by 2040,” Chalhoub said.