Aldar Raises $290 Million In Dual Tranche Green Sukuk

Aldar Investment Properties (AIP), a subsidiary of Aldar Properties, and owner-manager of $8.4 billion portfolio of income-generating properties, on Wednesday said that it has successfully raised $290 million through taps on its existing green sukuks maturing in 2034 and 2035.

The issuance was 2.8 times oversubscribed, attracting orders of $830 million, with regional and international investors representing 52% and 48% of the total transaction allocation respectively, AIP said in a bourse filing with Abu Dhabi Securities Exchange (ADX) this morning.

With a 4.89% yield, the 2034 green sukuk tap was competitively priced at a spread of 87 basis points over benchmark US Treasuries, while the 2035 green sukuk tap yielded 4.95% implying 87 basis points spread over the benchmark.

With these two issuances, Aldar achieved its tightest-ever spread for a public debt issuance as well as the tightest spread secured by any real estate company in the Middle East.

Chief Financial and Sustainability Officer at Aldar Properties Faisal Falaknaz said that Aldar’s ability to attract strong demand from a broad base of investors underlines confidence in their strategy and investment-grade standing.

By strengthening liquidity on a counter-cyclical basis, Aldar ensured the flexibility to pursue growth while remaining resilient through cycles and committed to the company’s sustainability agenda,” Falaknaz said.

Proceeds will be deployed in line with Aldar’s Green Finance Framework, including refinancing of sustainability-accredited assets. To date, Aldar has invested over $40.84 million in retrofitting 69 properties with new measures designed to optimise energy efficiency and reduce emissions, in line with the company’s Net Zero goals.

Joint Lead Managers

Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, JP Morgan and Standard Chartered acted as joint lead managers and joint bookrunners. The transaction saw strong engagement from international investors, including an anchor order from Brevan Howard Abu Dhabi.

These issuances follow recent capital-raising that further diversified funding sources, and as a result, Aldar now has close to $8.17 billion of available liquidity, providing a substantial buffer against market swings while preserving flexibility to fund sustainable growth.

Aldar is the leading real estate developer, manager, and investor in Abu Dhabi, with a growing presence across the UAE, the Middle East North Africa (MENA), and Europe.

The delivery of Aldar’s developments is managed by Aldar Projects, which is also a key partner of the Abu Dhabi government in delivering housing and infrastructure projects across the UAE’s capital. Internationally, Aldar Development wholly owns UK real estate developer London Square, as well as a majority stake in leading Egyptian real estate development company, SODIC.

Aldar Investment houses a core asset management business comprising a portfolio of more than $12.8 billion worth of investment grade and income-generating real estate assets diversified across retail, residential, commercial, logistics, and hospitality segments. It manages four core platforms: Aldar Investment Properties, Aldar Hospitality, Aldar Education, and Aldar Estates.