Abu Dhabi: Aldar Investment Properties (AIP), a subsidiary of Aldar Properties, has successfully raised $500 million through a 10-year green sukuk, reinforcing its commitment to sustainable finance and strengthening its financial position.
The issuance, which was oversubscribed 7.2 times, attracted orders exceeding $3.6 billion, with regional investors accounting for 61% and international investors making up 39% of the allocation.
The sukuk was priced at a spread of 110 basis points over the 10-year US Treasury yield and carries a coupon rate of 5.25%, maintaining consistency with Aldar’s May 2024 green sukuk issuance, which achieved the company’s tightest-ever spread for a public debt offering.
Aldar’s Strong Market Standing and Credit Ratings
The issuance marks Aldar’s third green sukuk under its $2 billion Trust Certificate Issuance Programme. Investor confidence was further bolstered by Moody’s reaffirmation of Aldar and AIP’s investment-grade ratings—Baa2 and Baa1, respectively—with a stable outlook in January 2025.
Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties, emphasized the company’s strong financial standing, stating:
“Our ability to consistently achieve a favourable cost of capital, even in the context of global market volatility, underscores the strength of our financial position and disciplined capital management. The strong demand for our latest green sukuk is a clear sign of investor confidence in our strategy and commitment to sustainable growth that delivers real impact for our stakeholders and communities.”
Utilization of Proceeds: Advancing Sustainability Goals
The sukuk proceeds will be allocated in line with Aldar’s Green Finance Framework to refinance sustainability-accredited real estate within AIP’s portfolio.
Aldar has already invested over AED 150 million in retrofitting 67 properties to enhance energy efficiency and reduce emissions, as part of its commitment to net-zero goals.
The funds will also support the early redemption of a sukuk maturing in September 2025 and the repayment of outstanding bank debt, further optimizing Aldar’s capital structure.
Key Players in the Transaction
The issuance was backed by major financial institutions, with JP Morgan and Standard Chartered acting as joint global coordinators, joint lead managers, and bookrunners. Other banks involved included:
- Abu Dhabi Commercial Bank
- Abu Dhabi Islamic Bank
- Ajman Bank
- Bank ABC
- Dubai Islamic Bank
- Emirates NBD Capital
- First Abu Dhabi Bank
- HSBC
- KFH Capital
- Mashreq
- Sharjah Islamic Bank
Strengthening Liquidity and Future Outlook
Since the start of 2025, Aldar has raised AED 16.3 billion in new liquidity across its capital structure, reinforcing its financial resilience and commitment to sustainable growth.
With a disciplined approach to capital management and a focus on green financing, Aldar Investment continues to set benchmarks in the regional real estate sector, driving sustainability and long-term economic impact.
