Aldar Strengthens Liquidity Through $290mn Dual Tranche Green Sukuk Tap

The issuance was oversubscribed 2.8 times, attracting orders of US$830 million.

Regional investors were allocated 52 per cent of the total transaction, while international investors were allocated 48 per cent. There was a strong engagement from international investors, including an anchor order from Brevan Howard Abu Dhabi.

Proceeds will be deployed in line with Aldar’s Green Finance Framework, including refinancing of sustainability-accredited assets. To date, Aldar has invested over AED150 million (US$40.85 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.

With a 4.89 per cent 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 per cent, 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.

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

“By strengthening liquidity on a countercyclical basis, we are ensuring the flexibility to pursue growth while remaining resilient through cycles and committed to our sustainability agenda.”

Aldar now has close to AED30 billion (US$8.17 billion) of available liquidity, providing a substantial buffer against market swings while preserving flexibility to fund sustainable growth.

Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, JP Morgan and Standard Chartered acted as joint lead managers and joint bookrunners.