Image: Aldar
Aldar Investment Properties (AIP), a subsidiary of Aldar Properties, has raised $290m through taps on its existing green sukuks maturing in 2034 and 2035, the company said.
The issuance was 2.8 times oversubscribed, attracting $830m in orders, with regional and international investors representing 52 per cent and 48 per cent of allocations respectively.
The 2034 green sukuk tap priced at a yield of 4.89 per cent, or 87 basis points over benchmark US Treasuries, while the 2035 tap priced at 4.95 per cent, also implying an 87 basis points spread. Aldar said this marked its tightest-ever spread for a public debt issuance and the lowest secured by any real estate company in the Middle East.
Proceeds will be deployed under Aldar’s Green Finance Framework, including refinancing sustainability-accredited assets. To date, Aldar has invested over Dhs50m in retrofitting 69 properties with energy efficiency measures, in line with its net zero goals.
“Aldar’s ability to attract strong demand from a broad base of investors underlines confidence in our strategy and investment-grade standing,” said Faisal Falaknaz, chief financial and sustainability officer at Aldar Properties. “By strengthening liquidity on a counter-cyclical basis, we are ensuring the flexibility to pursue growth while remaining resilient through cycles and committed to our sustainability agenda.”
Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, JP Morgan and Standard Chartered acted as joint lead managers and bookrunners. International investors included an anchor order from Brevan Howard Abu Dhabi.
The deal adds to recent capital-raising that has left Aldar with close to Dhs30bn of available liquidity, the company said.
Aldar increases its stake in Aldar Estates
In other news, Aldar announced it had increased its stake in Aldar Estates, the region’s largest integrated real estate services company, to 82.55 per cent after acquiring Modon Holding’s 17.45 per cent indirect shareholding through ADNEC Group.
Aldar Estates now manages more than 155,000 residential units, a 15 per cent rise over the past two years, and has doubled prime retail and commercial leasable space to two million square metres.
In 2024, the business generated Dhs2.6bn in revenue and Dhs400m in EBITDA.
“Aldar Estates is on a strong growth trajectory, driven by rising demand for facilities management, property management, and community services,” said Jassem Salah Busaibe, Chief Executive Officer of Aldar Investment.
The platform manages over Dhs3bn worth of active contracts and is part of Aldar Investment’s Dhs47bn portfolio of income-generating assets.
Read: Aldar reports 24% rise in H1 net profit, revenue grows 42% YoY
