(Updates demand, spread)
DUBAI, Oct 23 (Reuters) - Majid Al Futtaim, a UAE-based developer and shopping mall operator, is set to raise $600 million by selling “green” sukuk, or Islamic bonds, a document issued by one of the banks leading the sale showed on Wednesday.
The bonds, due in February 2030, offer 225 basis points over mid-swaps, down from an initial price guidance of around 250 basis points over.
The offering has received orders in excess of $2.3 billion, including interest from the joint lead managers, the document said.
The bonds will be used to finance or refinance renewable energy projects or projects related to energy efficiency.
Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.
BNP Paribas, Citi and HSBC have been hired to coordinate the deal, with Abu Dhabi Islamic Bank , Dubai Islamic Bank, ENBD Capital, and First Abu Dhabi Bank also participating. (Reporting by Davide Barbuscia; Editing by Himani Sarkar, Mark Potter and Deepa Babington)