Aldar Properties has successfully priced its $1.0 billion subordinated dated hybrid notes, marking a significant milestone in its capital-raising efforts.
The transaction attracted robust demand from a global institutional investor base, underscoring confidence in Aldar’s credit profile, and earnings outlook as it continues to deliver on its transformational growth strategy.
According to the statement, the proceeds from the issuance will be used to support Aldar’s ongoing growth strategy and key priorities.
These include replenishing its landbank, expanding its develop-to-hold portfolio, pursuing strategic acquisitions, optimizing its debt profile to strengthen its credit position, and maintaining debt capacity to fund future growth initiatives.
Faisal Falaknaz Group Chief Financial and Sustainability Officer- Aldar
“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.”
Aldar Hybrid Notes Offering: $4.2bn Orderbook Reflects Strong Global Interest
Reflecting strong global confidence in Aldar’s financial strength and its proven track record, the issuance was oversubscribed, with the peak orderbook reaching $4.2 billion and strong participation from institutional investors across diverse geographies. The final allocation comprises investors from the Middle East (31 percent), United Kingdom (27 percent), North America (24 percent), Asia (10 percent) and Europe (8 percent).
The unsecured, subordinated 30.25-year notes are non-callable for 7.25 years and will bear an initial yield of 5.95 percent and a coupon rate of 5.875 percent. The notes have characteristics of both debt and equity. The coupon payments will be distributed semi-annually and may be deferred. The offering is expected to close on 14th January 2026, subject to customary closing conditions.
As a debt instrument, the issuance is non-dilutive for Aldar equity investors. It is treated as 50 percent equity and 50 percent debt by Moody’s, enhancing Aldar’s overall credit profile while preserving senior debt capacity for future growth initiatives, as per the statement.
