Aldar Investment raises $500m through an oversubscribed green sukuk
The proceeds will be used in line with Aldar’s Green Finance Framework to refinance sustainability-accredited real estate within AIP’s portfolio
Aldar Investment Properties (AIP), a subsidiary of Aldar Properties, has raised $500m through a 10-year green sukuk, further strengthening its financial position.
The issuance was oversubscribed 7.2 times, attracting orders exceeding $3.6bn, with regional and international investors accounting for 61 per cent and 39 per cent of the allocation, respectively.
Priced at a spread of 110 basis points over the 10-year US Treasury yield, the sukuk carries a coupon rate of 5.25 per cent.
The transaction mirrors the company’s May 2024 green sukuk issuance, which achieved the company’s tightest-ever spread for a public debt offering.
The issuance, Aldar’s third under its $2bn Trust Certificate Issuance Programme, was buoyed by Moody’s reaffirmation in January of Aldar and AIP’s investment-grade ratings of Baa2 and Baa1, respectively, with a stable outlook.
“Our ability to consistently achieve a favourable cost of capital, even in the context of global market volatility, underscores the strength of our financial position and disciplined capital management,” said Faisal Falaknaz, chief financial and sustainability officer at Aldar Properties. “The strong demand for our latest green sukuk is a clear sign of investor confidence in our strategy and commitment to sustainable growth that delivers real impact for our stakeholders and communities.”
Sukuk proceeds to refinance sustainability-accredited real estate within Aldar’s portfolio
The proceeds will be used in line with the company’s Green Finance Framework to refinance sustainability-accredited real estate within AIP’s portfolio.
Aldar has invested over Dhs150m in retrofitting 67 properties to enhance energy efficiency and reduce emissions as part of its net zero goals.
The new issuance will support the early redemption of a sukuk maturing in September 2025 and the repayment of outstanding bank debt.
JP Morgan and Standard Chartered acted as joint global coordinators, as well as joint lead managers and book runners alongside Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq, and Sharjah Islamic Bank.
The company has raised Dhs16.3bn in new liquidity across its capital structure since the start of 2025, reinforcing its commitment to sustainable growth and financial resilience.
