Abu Dhabi – Mubasher: Aldar Investment Properties, a wholly-owned subsidiary of Aldar Properties, announced it has raised a nominal amount of $500 million by placing a fixed rate US dollar-denominated sukuk with a tenor of 10 years.
The transaction represents the first 10-year public sukuk issue by an issuer based in Abu Dhabi, according to a press release.
The sukuk has a coupon rate of 3.875%, which is the lowest rate ever achieved by Aldar, Aldar Investment highlighted.
The offering was over six times oversubscribed, with global investors accounting for 71% of the total transaction allocation, the company noted.
The company will use the net proceeds of the offering to refinance existing debt, Aldar said.
The issuance will help in diversifying the funding base of Aldar Investments as well as expanding Aldar’s overall duration of liabilities.
Talal Al Dhiyebi, CEO of Aldar, commented: “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,” he added.
The issuer has mandated Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAB), HSBC, and Standard Chartered Bank as joint global coordinators and joint lead managers for the offering.
Additionally, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Emirates NBD Capital, and Sharjah Islamic Bank acted as joint lead managers.
Aldar Investments holds and manages a diversified portfolio of high-quality income-generating residential, retail, commercial, and hospitality assets valued at an AED 20 billion.
It is worth noting that Aldar Investments is rated ‘Baa1’ by the credit rating agency Moody’s, the highest credit rating to be assigned for a non-government corporate in the region.