Dubai-based conglomerate, Majid Al-Futtaim has launched their green Islamic bond, attracting a mix of banks (33%) and asset managers (67%) from all over the world. CEO Alain Bejjani said this should ensure protection against any shocks in a particular sector or geography.
The green sukuk was listed on Nasdaq Dubai at a valuation of $600 million, with a tenor of ten years. He said, “We were oversubscribed by 5 to 6 times. The book was at above $3 billion and then we closed it at $2.98 billion after tightening (the) spread.”
We’ve seen a very wide interest in this first-ever green sukuk from the region, and first benchmark green sukuk globally.Alain Bejjani, CEO of Majid Al Futtaim Holding
The proceeds will be “invested in projects that are ‘green’ such as in green buildings that we are developing or investing in. We’ll also be investing in energy efficiency projects, as well as water saving projects that will have big social impact and use renewables.”
Green investment, social impact investment and socially responsible investment belong to the same realm, often overlapping in projects. These are increasingly gaining interest from investors across the world.
As the concern for the world rises, the new generation of ultra-high-net-worth-individuals is keen on greener portfolios. Sarwa, Dubai-based investment platform also launched its green portfolio investments in March this year, catering to investor interest and demand.
Read more about this green sukuk from Alain Bejjani here.