Aldar Investment Properties, an extremely famous subsidiary of Aldar Properties, has announced the successful subscription of $500 million UD denominated sukuk for US $500 million.
The sukuk carries a coupon rate of 3.875 per cent, the lowest rate ever achieved by Aldar, especially after strong investor demand. The deal, which marked the first 10 years of a public sukuk offered by Masdar in Abu Dhabi, was more than six times oversubscribed, with global investors accounting for 71 per cent of all transactions. Aldar owns and manages a diversified portfolio of AED 20 billion of high-quality residential, retail, commercial and hospitality assets.
“The success of the transaction represents a strong endorsement by the global investment community of the Abu Dhabi economy and of Aldar’s leading position in the regional real estate sector,” said Talal Al Debi, Chief Executive Officer of Aldar. Aldar is, witout a doubt, one of the most efficient platforms for real estate ownership in the region.
The net proceeds of this offer will be used to refinance existing debt. The issuance contributes to the optimal diversification of Aldar’s investment base and the extension of the total duration of the Company’s obligations. Aldar Investments is rated by Moody’s ass Baa1, the highest non-governmental credit rating in the region reflecting its market leading position in Abu Dhabi, stable recurring revenue, high quality of diversified assets and high occupancy.
Aldar has assigned Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank as joint global coordinators and joint executives, as well as Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates Dubai International Bank and Sharjah Islamic Bank as joint managers.