Today's Edition
ABU DHABI (ALETIHAD)
Aldar has issued $1 billion in subordinated hybrid notes to Apollo Global Management through a private placement, raising additional capital to support its growth momentum and optimise its capital structure.
The notes were issued at Aldar level, with net proceeds injected as equity into Aldar Investment Properties (AIP), which holds income-generating real estate assets. The transaction includes the repayment of $500 million perpetual subordinated notes previously issued by AIP to Apollo in 2022 as part of an initial $1.4 billion debt and equity investment.
Following the transaction, Aldar’s ownership in AIP has increased to 90%, with Apollo holding the remaining 10%. The deal brings Apollo’s total investment in Aldar to approximately $2.9 billion since 2022.
According to the company, the issuance represents the region’s largest corporate hybrid private placement. Aldar said the transaction enhances the resilience of both Aldar’s and AIP’s capital structures, supports its balance sheet strength and growth agenda, and is value accretive for shareholders.
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said, “This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory. The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalise on attractive opportunities across our core markets.
Importantly, it elevates Aldar’s share of stable, recurring income generated by AIP’s high quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to $5 billion.”
Jamshid Ehsani, Partner at Apollo, said: “Completing our fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors. Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team. This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.”
The hybrid notes share the characteristics of a recent $1 billion public issuance by Aldar, with a longer non-call period of 10.25 years. In early January, Moody's reaffirmed Aldar’s Baa2 credit rating and AIP’s Baa1 credit rating, both with a stable outlook, and assigned a standalone credit rating of Baa3 to the publicly issued hybrid notes, with 50% equity credit. Citi acted as sole global coordinator, structuring agent and rating advisor for the transaction.
