Aldar Prices $1bn Hybrid Notes As Global Orderbook Tops $4.2bn

The transaction underscores confidence in Aldar’s credit profile and earnings outlook as it advances its long-term growth strategy.

The issuance was oversubscribed, with the peak orderbook reaching $4.2bn, reflecting robust international investor appetite.

Final allocations were distributed across the Middle East (31 per cent), the United Kingdom (27 per cent), North America (24 per cent), Asia (10 per cent) and Europe (8 per cent).

Proceeds from the transaction will support Aldar’s growth agenda, including landbank replenishment, expansion of its develop-to-hold portfolio, strategic acquisitions, optimisation of its debt profile to enhance the overall credit profile, and preservation of debt capacity for future growth initiatives.

Aldar prices hybrid notes

Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: “The strong demand for our hybrid notes and the outcome we achieved reflect deep investor confidence in Aldar’s credit strength and disciplined countercyclical financial strategy.

“The hybrid enhances our capital structure with long-term, flexible funding while supporting our investment-grade profile and preserving senior debt capacity for further growth.

“It positions us to continue executing our growth priorities and pipeline with confidence, building on the strong momentum across the business and the real estate market.”

The unsecured, subordinated 30.25-year notes are non-callable for 7.25 years and carry an initial yield of 5.95 per cent with a coupon rate of 5.875 per cent. Coupon payments will be distributed semi-annually and may be deferred. The notes have characteristics of both debt and equity.

The offering is expected to close on January 14, 2026, subject to customary closing conditions. As a debt instrument, the issuance is non-dilutive for Aldar’s equity investors.

Credit profile and ratings

The hybrid notes are treated as 50 per cent equity and 50 per cent debt by Moody’s, enhancing Aldar’s overall credit profile while preserving senior debt capacity for future growth.

Moody’s assigned a Baa3 rating to the hybrid notes, one notch below Aldar’s corporate rating of Baa2 (Stable). The rating reflects Aldar’s robust financial position, strong liquidity — AED 29.7bn ($8.1bn) in available liquidity as at 30 September 2025 — and its role as a strategic partner to the Abu Dhabi government.

Marketed under Rule 144A and Regulation S, the issuance was globally led and coordinated by Citi as Sole Structuring Advisor, Global Coordinator and Joint Bookrunner. Joint lead managers and bookrunners included Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, IMI-Intesa Sanpaolo, J.P. Morgan, Mashreq, Société Générale, Standard Chartered, and The National Bank of Ras Al Khaimah (RAKBANK).

The structure of the new hybrid mirrors Aldar’s $1bn hybrid issuance completed in January 2025.

The latest transaction brings Aldar’s total funding raised during 2025 to $5.1bn, including $1.5bn of hybrid capital, further strengthening the group’s liquidity and capital structure.