Source : WAM
Aldar has successfully priced its US$1.0 billion subordinated dated hybrid notes. The transaction drew strong demand from a global institutional investor base, highlighting confidence in Aldar’s credit profile and earnings outlook as it continues executing its transformational growth strategy.
Proceeds from the issuance will support Aldar’s ongoing growth agenda and strategic priorities, including landbank replenishment, expansion of its develop-to-hold portfolio, strategic acquisitions, optimizing the debt profile to strengthen the overall credit profile, and preserving debt capacity to fund future growth initiatives.
Reflecting strong global confidence in Aldar’s financial strength and track record, the offering was oversubscribed, with a peak orderbook of US$4.2 billion and wide participation from institutional investors across multiple regions. The final allocation includes investors from the Middle East (31%), United Kingdom (27%), North America (24%), Asia (10%), and Europe (8%).
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said, “The strong demand for our hybrid notes and the outcome we achieved reflect deep investor confidence in Aldar’s credit strength and disciplined countercyclical financial strategy. The hybrid enhances our capital structure with long-term, flexible funding while supporting our investment-grade profile and preserving senior debt capacity for further growth. It positions us to continue executing our growth priorities and pipeline with confidence, building on the strong momentum across the business and the real estate market.”
The unsecured, subordinated 30.25-year notes are non-callable for 7.25 years and carry an initial yield of 5.95% with a coupon rate of 5.875%. The notes combine features of both debt and equity. Coupon payments will be distributed semi-annually and may be deferred. The offering is expected to close on 14 January 2026, subject to customary closing conditions.
As a debt instrument, the hybrid is non-dilutive for Aldar’s equity investors. Moody’s treats it as 50% equity and 50% debt, enhancing Aldar’s overall credit profile while preserving senior debt capacity for future growth.
Moody’s assigned a Baa3 rating to the hybrid notes, one notch below Aldar’s corporate rating of Baa2 (Stable). This reflects Aldar’s robust financial position, strong liquidity (AED29.7 billion as of 30 September 2025), and its strategic partnership with the Abu Dhabi government.
Marketed under 144A / Reg S, the transaction was globally led and coordinated by Citi (Sole Structuring Advisor, Global Coordinator, and Joint Bookrunner), alongside Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, IMI-Intesa Sanpaolo, J.P. Morgan, Mashreq, Société Générale, Standard Chartered, and The National Bank of Ras Al Khaimah (RAKBANK) as joint lead managers and bookrunners.
The structure of the new hybrid mirrors Aldar’s successful US$1.0 billion hybrid issuance in January 2025. The latest US$1.0 billion transaction brings the total funding raised by Aldar in 2025 to US$5.1 billion (including US$1.5 billion of hybrid capital), further strengthening the company’s liquidity and capital structure.
