Aldar Properties has issued US$1.0 billion in subordinated hybrid notes to Apollo Global Management through a private placement, strengthening its capital base to support expansion.
Moreover, the notes were issued at the Aldar level, with net proceeds injected as equity into Aldar Investment Properties (AIP), which holds income-generating assets. The transaction therefore optimises the Group’s capital structure while enhancing balance sheet flexibility. Additionally, Aldar repaid US$500 million in perpetual subordinated notes previously issued by AIP to Apollo as part of the initial US$1.4 billion investment agreed in 2022.
Following completion, Aldar increased its ownership in AIP to 90%, while Apollo retains a 10% stake. Consequently, the structure enhances Aldar’s share of recurring income from AIP’s diversified portfolio.
Largest Regional Hybrid Private Placement
The issuance to Apollo-managed affiliates, funds and clients represents the region’s largest corporate hybrid private placement. As a result, Apollo’s cumulative investment in Aldar has reached approximately US$2.9 billion since 2022.
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 capitalize 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 US$5 billion.”
Apollo Partner Jamshid Ehsani 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.”
Ratings and Structure
The hybrid notes share similar characteristics to Aldar’s recent US$1.0 billion public issuance, although they carry a longer non-call period of 10.25 years. Meanwhile, Moody’s reaffirmed Aldar’s Baa2 rating and AIP’s Baa1 rating with stable outlooks, and assigned a Baa3 standalone rating to the publicly issued hybrid notes with 50% equity credit.
Citigroup acted as sole global coordinator, structuring agent and rating advisor for the transaction.
