Aldar Investment Properties’ $500mn Green Sukuk oversubscribed 7.2 times

Aldar Investment Properties (AIP), a subsidiary of Aldar Properties, successfully raised $500 million through a 10-year green sukuk, which received enthusiastic response from global investors.

The issuance was oversubscribed 7.2 times, attracting total orders worth $3.6 billion from regional and international investors. Regional investors subscribed 61 per cent of the total transaction allocation.

It marked the company’s third green sukuk issuance under its $2 billion Trust Certificate Issuance Programme launched in May 2023.

With a 5.25 per cent coupon rate, the sukuk was priced at a spread of 110 basis points over 10-year US Treasuries, in line with a green sukuk issued in May 2024 when Aldar achieved its tightest-ever spread for a public debt issuance.

Proceeds will be deployed as per Aldar’s Green Finance Framework, which guides a broad programme of sustainability initiatives. To date, Aldar has invested over AED150 million in retrofitting 67 properties with new measures designed to optimise energy efficiency and reduce emissions, in line with the company’s Net Zero goals.

The new issuance supports the early redemption of a sukuk maturing in September 2025 and the repayment of outstanding bank debt.

Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties, commented: “Aldar’s 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.

“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.”

AIP is the owner-manager of an AED28 billion ($7.6 billion) portfolio of income-generating properties.