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Majid Al Futtaim (MAF) and Banque Saudi Fransi both launched Islamic bonds, or sukuk, on Tuesday, as investor demand and favorable conditions drive issues from the Gulf region.

Emirati retail conglomerate MAF launched a $500 million 10-year green sukuk at 140 basis points (bps) over Treasuries, capital markets publication IFR reported, tighter than earlier guidance, after order books hit more than $3 billion.

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Dubai-based MAF, a leading family-owned business group with assets of $18 billion at the end of 2022, said on Monday it had mandated banks ahead of a sale.

Saudi lender Banque Saudi Fransi launched a $900 million five-year sukuk at 105 bps over Treasuries, tightening from guidance of 130 bps over Treasuries, with order books of over $2.5 billion, IFR reported.

The bank announced on Monday that it had mandated banks to arrange investor calls ahead of a possible issue under its $4 billion trust certificate issuance program.

There has been a pick-up in Islamic debt issuance from the Gulf recently as borrowers look to tap a broader investor base and meet demand for an under-supplied asset class.

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