Abu Dhabi - Mubasher: Aldar Properties priced its $1 billion subordinated dated hybrid notes to accelerate the growth strategy, according to a press release.
The transaction attracted robust demand from a global institutional investor base, reflecting confidence in Aldar’s credit profile and outlook. It achieved one of the tightest spreads for a corporate hybrid issuance in the CEEMEA region.
Proceeds from the offering will be used to support Aldar’s growth agenda and its strategic priorities, including land bank replenishment, expansion of its develop-to-hold portfolio, and strategic acquisitions.
The ADX-listed group plans to optimize the debt profile to improve the overall credit profile and preserve debt capacity to fund and support future strategic growth initiatives.
The issuance was oversubscribed, with the peak orderbook reaching $4.20 billion and strong participation from institutional investors across diverse geographies.
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: “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,” Falaknaz added.
The subordinated 30.25-year notes are non-callable for 7.25 years and will bear an initial yield of 5.95% and a coupon rate of 5.87%. The notes have characteristics of both debt and equity.
Meanwhile, the coupon payments will be distributed semi-annually and may be deferred. The offering is expected to close on 14 January 2026, subject to customary closing conditions.
Moody’s has assigned a rating of ‘Baa3’ to the hybrid notes, sitting one notch below Aldar’s corporate rating of ‘Baa2’, with a stable outlook.
The issuance was globally led and coordinated by Citi, alongside Abu Dhabi Commercial Bank (ADCB), Emirates NBD Capital, First Abu Dhabi Bank (FAB), IMI-Intesa Sanpaolo, J.P. Morgan, Mashreq, Société Générale, Standard Chartered, and RAKBANK acting as joint lead managers and bookrunners.
The structure of the new hybrid is identical to Aldar’s successful $1 billion hybrid issuance completed in January 2025.
