Aldar Properties issues $1 billion hybrid notes

Aldar Properties has successfully priced its inaugural  $1 billion hybrid capital issuance, attracting robust demand from a wide range of regional and international investors.

The issuance by Aldar at  level represents the largest conventional hybrid in the Middle East. The transaction also achieved the highest rating, and the tightest credit spread at issuance for a corporate hybrid in the Central & Eastern Europe, Middle East and Africa (CEEMEA) region.

The proactive and innovative initiative introduces a hybrid layer to Aldar’s capital structure for the first time, reinforcing the company’s strong balance sheet and credit profile, while enhancing financial stability and resilience. Proceeds will support the continuation of Aldar’s transformational growth plan and its strategic priorities, including landbank replenishment and expansion, develop to hold portfolio, and acquisitions. 

Underscoring strong investor confidence in Aldar’s financial strength, strategic direction and potential for growth and value creation, the issuance was oversubscribed by 3.8 times. Total orders exceeded $4.9 billion from a wide range of institutional investors across diverse geographies. The final allocation comprises investors from the Middle East and North Africa (41%) the United Kingdom (38%), Europe (9%), North America (8%) and Asia (4%).

Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: “The strong appetite for this issuance from a broad base of international institutional investors is a statement of confidence in Aldar’s vision and strategic direction. The company has carved a credible and proven track record of delivering measured and sustainable growth, and this landmark hybrid issuance supports the continued execution against our growth ambitions by further optimising our capital structure, setting firm foundations for Aldar to pursue a strategy to deliver significant value creation for all our stakeholders in the coming years.”