Abu Dhabi’s Aldar Properties raises Dhs9bn sustainability-linked loan

Abu Dhabi property developer Aldar Properties said on Monday it had raised $2.45bn (Dhs9bn) sustainability-linked syndicated loan in what is the largest environmental, social and governance (ESG) financing by a real estate company in the Middle East.

The facility is six times larger than any other single-bank financing the company has done in its recent history. It follows Aldar’s inaugural Dhs3.67bn hybrid notes issuance earlier in January.

Aldar said the facility, arranged at a historically tight credit, reinforces its balance sheet and provides substantial committed liquidity to fuel its growth trajectory across both its property development and investment platforms.

The new financing, with a five-year maturity, will be provided by a group of domestic and international banks comprising Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD Bank, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, J.P. Morgan, Mashreq, National Bank of Kuwait, RAKBANK, and Sharjah Islamic Bank.

The facility, which incorporates both conventional and Islamic tranches across Dhs and USD currencies, offers both committed and revolving lines of credit linked to a floating interest rate to capitalise on favourable market conditions.

Aldar said that the facility has strengthened its liquidity position, bringing its total available liquidity to Dhs26.9bn as of September 30, 2024 (pro forma for this syndication), including unrestricted cash and bank balances of Dhs9.5bn, along with Dhs17.4bn in undrawn committed revolving credit facilities.

Meanwhile, the developer posted a 41 per cent year-on-year increase in Q3 2024 net profit to Dhs1.3 bn, driven by record development sales and strong contributions from its recurring income portfolio.

Aldar’s development sales rose by 27 per cent YoY to hit a quarterly record of Dhs9.9bn in the three months ended September 30, supported by the launch of new wellness-inspired luxury developments and positive contributions from the firm’s international sales network.

Aldar Development’s revenues in the third quarter of 2024 surged by 99 per cent YoY to Dhs3.9bn, with earnings before interest, taxes, depreciation and amortisation (EBITDA) standing at Dhs3.2bn, up 72 per cent YoY.

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