Built to inform

Sign up for the daily newsletters

No, Thank you

New Aldar unit makes tender offer to repay existing $750m sukuk

Aldar Investment Properties said the USD-denominated sukuk aims to repay the $750m raised through its first sukuk issue in 2013

Aldar Investment Properties is the newly formed subsidiary of Abu Dhabi's Aldar Properties.
Aldar Investment Properties is the newly formed subsidiary of Abu Dhabi's Aldar Properties.

The newly formed real estate investment subsidiary at Aldar Properties is hosting fixed-income investor meetings regarding the issuing of a new Islamic bond (sukuk) to repay an existing $750m (AED2.75bn) which matures in less than three months.

In a statement to Abu Dhabi Securities Exchange, where Aldar’s shares are traded, Aldar Investment Properties said: “The objective of these meetings is to issue a fixed rate US dollar denominated sukuk – the New Aldar Investments Sukuk – with a tenor of five to 10 years.”

Aldar said the meetings will be held across the Middle East, Europe, and Asia on 18 September, adding the outcome of the issue is subject to market conditions with further announcements regarding the sukuk issue to follow in due course.

READ: Abu Dhabi's new Aldar Investment to own $5bn property portfolio

The firm said the proceeds from this sukuk will fund a tender offer – announced in the same statement – to repay Aldar’s existing $750m sukuk that matures on 3 December, 2018.

“This offer is being made as part of Aldar’s pro-active liability management strategy to optimise its debt profile and aggregate costs of funding,” the developer said, adding the dealer managers for the offer are First Abu Dhabi Bank, JP Morgan Securities, and Standard Chartered Bank.

The offer is expected to close on 26 September, 2018, contingent on the successful pricing and completion of the new issue.

READ: Abu Dhabi’s Aldar Properties appoints new chairman, CEO

The group’s $750m sukuk was the developer’s first since its merger with Sorouh Real Estate in June 2013 as it sought to reduce its borrowing costs.

This latest effort follows a similar pattern of debt restructuring, with Aldar stating that the offer is being made as part of its “pro-active liability management strategy to optimise its debt profile and aggregate costs of funding”.

The news also comes one month after Aldar reported that its year-on-year net profits were 11.4% lower in H1 2018 compared to same period in 2017, as shown in the firm’s Q2 financials.

Most popular

Awards

Go for gold at the 15th Construction Week Awards in December 2019!
Winners will be crowned under 14 categories at a gala ceremony in Dubai – are

Conferences

Leaders UAE 2019: Pinsent Masons confirmed as Gold Sponsor
Law firm is among the major construction industry players confirmed as sponsors for Leaders UAE's
Leaders in Construction UAE Summit returns in Sept 2019
Dubai conference to see top officials discuss the people, trends, and challenges that will power

Latest Issue

Construction Week - Issue 743
Jun 01, 2019