Aldar Investment Properties (AIP), a subsidiary of Aldar Properties PJSC, has raised $290 million through taps on its existing green Sukuks maturing in 2034 and 2035. The issuance was 2.8 times oversubscribed, attracting $830 million in orders, with 52 percent from regional investors and 48 percent from international participants.
The 2034 Sukuk was issued at a 4.89 percent yield with a spread of 87 basis points over US Treasuries, while the 2035 Sukuk yielded 4.95 percent, also reflecting an 87 basis point spread. This strong pricing demonstrates continued investor appetite for sustainability-linked instruments in the UAE market.
Funding sustainability and green initiatives
Proceeds from the issuance will support Aldar’s Green Finance Framework, including refinancing sustainability-accredited assets. To date, Aldar has invested over AED150 million in retrofitting 69 properties, optimising energy efficiency and reducing emissions in line with the company’s Net Zero objectives.
The transaction was jointly managed by Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, JP Morgan, and Standard Chartered. Notably, the deal secured strong international support, including an anchor order from Brevan Howard Abu Dhabi.
Enhanced liquidity for strategic growth
This green Sukuk issuance follows recent capital-raising efforts that diversified Aldar’s funding sources. As a result, the company now holds close to AED30 billion in available liquidity, providing a buffer against market volatility and maintaining flexibility to finance sustainable expansion.
