• First-ever 10-year public sukuk offering by an Abu Dhabi-based issuer
• Lowest-ever coupon achieved by an Aldar entity, at 3.875%
• Strong demand from international investors, with issue over six times oversubscribed
Aldar Investment Properties has listed a US$500 million sukuk on the Abu Dhabi Securities Exchange. The 100%-owned subsidiary of Aldar Properties successfully placed a fixed-rate US dollar-denominated sukuk with a tenor of 10 years for a nominal amount of US$500 million.
The sukuk carries a coupon rate of 3.875%, the lowest rate ever achieved by Aldar, following strong investor demand. The transaction, which marked the first 10-year public sukuk offering by an Abu Dhabi-based issuer, was over six times oversubscribed. Global investors accounted for 71% of the total transaction allocation.
Talal Al Dhiyebi, CEO of Aldar said: "The success of the transaction represents a strong endorsement by the global investment community of the Abu Dhabi economy and of Aldar's leading position in the regional real estate sector. This landmark deal further strengthens our balance sheet, and is testament to Aldar Investments' status as one of the most efficient platforms for property ownership in the region."
The net proceeds of the offering will be used to refinance existing debt. The issuance contributes to an optimal diversification of Aldar Investments' funding base and extends Aldar's overall duration of its liabilities.
Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank were the joint global coordinators and joint lead managers, along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital and Sharjah Islamic Bank as joint lead managers.
Aldar Investments owns and manages a AED20 billion diversified portfolio
of high-quality income-generating residential, retail, commercial and
hospitality assets. It is rated Baa1 by Moody's, the highest credit rating for a corporate
non-government corporate in the region, reflecting its stable recurring
revenue, high quality of diversified assets, high occupancies,
diversified tenant based and strong operating model.