UAE’s retail conglomerate Majid Al Futtaim (MAF) has signed an agreement to obtain its second $1.25 billion sustainability loan, structured as a revolving credit facility, to achieve the company’s environmental, social, and governance (ESG) targets.
First Abu Dhabi Bank (FAB), UAE’s largest lender, coordinated the transaction as a sustainability agent, in line with Majid Al Futtaim’s ambitious strategy and sustainability goals, which will be measured annually throughout the credit facility period.
Read more: UAE’s MAF posts AED 18 bln in revenues for H1
The revolving credit facility is linked to MAF’s ESG targets and is expected to assist the mall developer in reducing the carbon footprint of its property portfolio and achieving LEED Gold or equivalent certification for its malls by 2026.
MAF also intends to use the funds to build more malls with LEED Platinum or equivalent ratings by 2027, as well as to improve gender diversity within the company.
To become LEED Gold certified, the buildings had to meet exacting standards for energy use, lighting, water, and material use, as well as incorporate a variety of sustainable strategies.
MAF has a proven track record of resource management efficiency. As part of its ‘Dare Today, Change Tomorrow’ sustainability strategy, the company established three areas of focus in 2018: transforming lives, realigning resources, and empowering employees.
Moreover, Majid Al Futtaim launched a company-wide ‘Circular Economy Strategy’ in 2020 to further reduce its environmental footprint, with the goal of having all MAF businesses follow this strategy by 2030.