October 23, 2013 / 9:05 AM / 4 years ago

Dubai's MAF revises guidance on hybrid bond issue

LONDON, Oct 23 (IFR) - Dubai's Majid Al Futtaim has revised price guidance to 7.375% area on its upcoming issue of a US dollar-denominated hybrid bond, as order books reached around USD3.5bn, according to one of the lead managers.

The company, which operates Carrefour stores across the Middle East, has set a maximum size of USD500m for the transaction, which is expected to price today.

The issuer released initial price thoughts of mid to high 7% on Tuesday, after two days of investor calls.

The bond, which would become the Gulf's first international hybrid to be issued by a corporate borrower, will be callable after the first five years.

The coupon on the bond will step up by 25bp in year 10 and by an additional 75bp in year 25, according to the proposed terms.

The mall operator originally announced the transaction and conducted investor roadshows in May, but was forced to delay the sale due to adverse market conditions.

Goldman Sachs and HSBC are structuring advisors on the deal, joined by Bank of America Merrill Lynch, Emirates NBD Capital, JP Morgan and Standard Chartered as joint bookrunners.

The Reg S-only notes are expected to be rated BB+ and to receive a 50% equity credit by both Standard & Poor's and Fitch. The issuer is rated BBB/BBB by the same agencies.

Reporting By Josie Cox and Davide Scigliuzzo; Editing by Sudip Roy

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