Aldar Properties PJSC has launched its inaugural USD 1B hybrid capital issuance, attracting strong interest from regional and global investors.
The issuance, the largest conventional hybrid in the Middle East, achieved the highest rating and tightest credit spread for a corporate hybrid in the CEEMEA region. Aldar’s statement highlighted that the funds will support its growth plans, including landbank expansion, acquisitions, and portfolio development, while reinforcing its capital structure and financial resilience.
Investor confidence was evident as the issuance was oversubscribed by 3.8 times, garnering over $4.9B in orders from institutional investors across the Middle East and North Africa (41%), the United Kingdom (38%), Europe (9%), North America (8%), and Asia (4%).
The 30.25-year unsecured, subordinated hybrid notes, combining debt and equity characteristics, offer an initial yield of 6.625% with a 7.25-year non-call period. Semi-annual coupon payments may be deferred for up to five years, providing flexibility in Aldar’s capital management.
Moody’s reaffirmed Aldar’s Baa2 credit rating with a stable outlook in January 2025 and assigned a Baa3 standalone rating to the hybrid notes. Treated equally as debt and equity for rating purposes, the non-dilutive notes allow Aldar to reduce senior debt while preserving capacity for growth.
Marketed under Regulation S, the issuance was globally led by Citi, with joint bookrunners including major financial institutions such as First Abu Dhabi Bank, HSBC, and Standard Chartered. This strategic issuance underlines Aldar’s financial strength and commitment to its transformational growth agenda.
