GCC’s first green sukuk signals a changing tide

Author: Lizzie Meager | Published: 27 Jun 2019

The first green sukuk to be sold by a Gulf Cooperation Council (GCC) company is the marker of shifting global sentiment towards environmental, social and governance (ESG) investments.

The $600 million 10-year deal, sold by UAE real estate and leisure company Majid Al Futtaim (MAF), was five times oversubscribed by an overwhelmingly high quality, long-term investor base, according to those who worked on the deal.

"We’ve been pitching the green initiative to issuers for a few years now, and it’s great that MAF has seen this as an opportunity," said Marc Abourjeily, head of MENA debt capital markets at HSBC, which acted as green structuring advisor and joint global coordinator. "The sukuk angle ensures that issuers can catch the largest proportion of investors in the region, and adding green to that creates a...