Abu Dhabi’s Aldar Investment Properties issues $500m sukuk

The sukuk was oversubscribed six times, with 71% of the total transaction allocation being topped by global investors

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Aldar Investment Properties, a fully-owned subsidiary of Abu Dhabi Securities Exchange-listed (ADX) real estate developer Aldar Properties, has issued $500m (AED1.8bn) fixed-rate US dollar sukuk, with the financial certificate being issued for a period of 10 years.

The UAE’s state-held news agency, Wam, cited the company, which said that the sukuk carried a coupon rate of 3.9%, marked the lowest rate ever achieved by the Abu Dhabi-based developer following strong investor demand.

Aldar had appointed Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, and Standard Chartered Bank as joint global coordinators, and joint lead managers, along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital, and Sharjah Islamic Bank.

According to the company the sukuk — which was a first by an Abu Dhabi-based issuer — was oversubscribed six times, with 71% of the total transaction allocation being topped by global investors.

Speaking about the sukuk issuance, chief executive officer of Aldar, Talal Al Dhiyebi, said: “This landmark deal further strengthens our balance sheet, and is a testament to Aldar Investments’ status as one of the most efficient platforms for property ownership in the region."

Currently, Aldar Investments owns and manages $5.4bn (AED20bn) worth of residential, retail, commercial, and hospitality assets.

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