Aldar subsidiary raises $500m through green sukuk
ABU DHABI (ALETIHAD)Aldar Investment Properties (AIP), a subsidiary of Aldar Properties (Aldar), and owner-manager of Dh28 billion portfolio of income-generating properties, has successfully raised $500 million through a 10-year green sukuk. The issuance saw overwhelming investor demand, with an order book exceeding $3.6 billion, making it 7.2 times oversubscribed, a statement from Aldar said. Regional investors accounted for 61% of allocations, while international investors took up the remaining 39%.With a 5.25% coupon rate, the sukuk was competitively priced at a spread of 110 basis points over 10-year US Treasuries. It follows a similar green sukuk issued in May 2024 when Aldar achieved its lowest-ever spread for a public debt issuance. The strong investor demand was supported by Moody's reaffirmation in January of investment-grade ratings of Aldar and AIP of Baa2 and Baa1 respectively, with a stable outlook. The transaction marked the company's third green sukuk issuance under its $2 Billion Trust Certificate Issuance Programme launched in May 2023.Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties, commented: 'Aldar's ability to consistently achieve a favourable cost of capital, even in the context of global market volatility, underscores the strength of our financial position and disciplined capital management. The strong demand for our latest green sukuk is a clear sign of investor confidence in our strategy and commitment to sustainable growth.'Proceeds will be deployed in accordance with Aldar's Green Finance Framework, which guides a broad programme of sustainability initiatives, including Aldar's ongoing investments in optimising energy efficiency. To date, Aldar has invested over Dh150 million in retrofitting 67 properties with new measures designed to optimise energy efficiency and reduce emissions.The new issuance supports the early redemption of a sukuk maturing in September 2025 and the repayment of outstanding bank debt.
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