Aldar has successfully priced US$1.0 billion of subordinated dated hybrid notes, attracting robust demand from a diversified global institutional investor base. The strong response reflects investor confidence in Aldar’s credit profile and earnings outlook as the group continues to execute its long-term growth strategy.
The issuance was oversubscribed, with the peak orderbook reaching US$4.2 billion. Final allocations were distributed across the Middle East (31%), the United Kingdom (27%), North America (24%), Asia (10%), and Europe (8%), highlighting broad international participation.
Use of proceeds and transaction structure
Proceeds from the issuance will support Aldar’s strategic priorities, including landbank replenishment, expansion of its develop-to-hold portfolio, strategic acquisitions, optimisation of the group’s debt profile, and preservation of debt capacity to fund future growth initiatives.
The unsecured and subordinated notes have a tenor of 30.25 years and are non-callable for 7.25 years. They carry an initial yield of 5.95% and a coupon rate of 5.875%, with semi-annual coupon payments that may be deferred. The offering is expected to close on 14 January 2026, subject to customary conditions.
As a hybrid instrument, the notes have characteristics of both debt and equity and are non-dilutive for Aldar’s equity investors. Moody’s treats the issuance as 50% equity and 50% debt, supporting Aldar’s investment-grade profile while preserving senior debt capacity.
Credit impact and market positioning
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: “The strong demand for our hybrid notes and the outcome we achieved reflect deep investor confidence in Aldar’s credit strength and disciplined countercyclical financial strategy. 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.”
Moody’s assigned a Baa3 rating to the hybrid notes, one notch below Aldar’s corporate rating of Baa2 with a stable outlook. The rating reflects Aldar’s strong liquidity position, with AED29.7 billion in available liquidity as of 30 September 2025, and its role as a strategic partner to the Abu Dhabi government.
The transaction was marketed under Rule 144A and Regulation S. Citi acted as sole structuring advisor, global coordinator, and joint bookrunner, alongside Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, IMI-Intesa Sanpaolo, J.P. Morgan, Mashreq, Société Générale, Standard Chartered, and the National Bank of Ras Al Khaimah as joint lead managers and bookrunners.
The structure mirrors Aldar’s US$1.0 billion hybrid issuance completed in January 2025. The latest transaction brings total funding raised by the group in 2025 to US$5.1 billion, including US$1.5 billion in hybrid capital, further strengthening Aldar’s liquidity and capital base.
