Aldar Investment Properties (AIP), a subsidiary of Aldar Properties and the manager-owner of a AED30.7 billion (US$8.4 billion) portfolio of income-generating assets, has successfully raised US$290 million through tap issuances on its existing green sukuk due in 2034 and 2035.
The offering was 2.8 times oversubscribed, drawing total orders of US$830 million.
Regional investors received 52 per cent of the allocation, while international investors accounted for 48 per cent. Notably, international demand was robust, including a significant anchor order from Brevan Howard Abu Dhabi.
Funds raised will be used in line with Aldar’s Green Finance Framework, including refinancing sustainability-accredited assets. To date, Aldar has invested over AED150 million (US$40.85 million) to retrofit 69 properties with measures aimed at enhancing energy efficiency and reducing emissions, supporting the company’s Net Zero objectives.
The 2034 green sukuk tap was priced at a 4.89 per cent yield, reflecting an 87 basis point spread over US Treasury benchmarks, while the 2035 issuance yielded 4.95 per cent, also at an 87 basis point spread.
These two issuances mark Aldar’s tightest-ever spread for a public debt issuance and represent the narrowest spread achieved by any real estate company in the Middle East.
Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties, said: “Aldar’s ability to attract strong demand from a broad base of investors highlights confidence in our strategy and investment-grade profile.”
