Dubai's MAF picks banks for sukuk programme

United Arab Emirates shopping mall developer Majid Al Futtaim has appointed HSBC and Standard Chartered to structure its planned sukuk programme, three sources familiar with the matter said on Monday.

The two banks will arrange the documentation for the scheme, and create a process for banks to pitch for lead manager slots on any sukuk issue under the programme on a future date, two of the sources added.

"It is similar to what they did for their conventional bond programme, where one or two banks helped them put it together and then they brought in others later," one said.

MAF, which is the sole franchisee for hypermarket chain Carrefour in the Gulf, completed roadshows for a conventional offering from its $2 billion medium term notes programme in June but chose not to issue a bond because of unfavourable market conditions.

The company's chief executive Iyad Malas has said part of the funds from the sukuk will be used to finance new investments, including a new mall in Egypt.

The sukuk market has been relatively resilient during a global financial downturn that has dried up bond issuances. Goldman Sachs registered a $2bn Islamic bond programme earlier this month, providing further evidence of conventional borrowers looking to sharia-complaint funding sources.