Today's Edition
ABU DHABI (ALETIHAD)
Aldar Properties has successfully priced its inaugural $1 billion hybrid capital issuance, attracting robust demand from a wide range of regional and international investors.
The issuance by Aldar at the “PJSC” level represents the largest conventional hybrid in the Middle East. The transaction also achieved the highest rating and the tightest credit spread at issuance for a corporate hybrid in the Central & Eastern Europe, Middle East and Africa (CEEMEA) region.
The issuance was oversubscribed by 3.8 times. Total orders exceeded $4.9 billion from a wide range of institutional investors across diverse geographies. The final allocation comprises investors from the Middle East and North Africa (41%) the United Kingdom (38%), Europe (9%), North America (8%) and Asia (4%).
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar said: “The strong appetite for this issuance from a broad base of international institutional investors is a statement of confidence in Aldar’s vision and strategic direction.”
With debt and equity characteristics, the unsecured, subordinated 30.25-year notes provide investors with an initial yield of 6.625% with a non-call period extending to 7.25 years. The coupon payments, which will be distributed semi-annually, may be deferred for up to five years and are both cumulative and compounding, providing additional flexibility to Aldar’s capital structure.
In January 2025, Moody’s reaffirmed Aldar’s Baa2 credit rating with a stable outlook and assigned a standalone credit rating of Baa3 to the hybrid notes.
