Moody’s reaffirmation in January of Aldar’s and AIP’s investment-grade ratings of Baa2 and Baa1, respectively, with a stable outlook, bolstered the robust investor demand. Through a 10-year green sukuk, Aldar Investment Properties (AIP), a division of Aldar Properties and owner-manager of a portfolio of income-producing properties valued at Dh28 billion ($7.6 billion), has raised $500 million.
Attracting $3.6 billion in orders, the issue was 7.2 times oversubscribed, with regional and foreign investors accounting for 61% and 39% of the total transaction allocation, respectively. In accordance with a green sukuk released in May 2024, when Aldar achieved its tightest-ever spread for a public debt offering, the sukuk was competitively priced at a spread of 110 basis points over 10-year US Treasuries, with a 5.25 percent coupon rate.
Moody’s reaffirmation in January of Aldar’s and AIP’s investment-grade ratings of Baa2 and Baa1, respectively, with a stable outlook, bolstered the robust investor demand. The deal was the third green sukuk issued by the company as part of its $2 billion Trust Certificate Issuance Program, which was started in May 2023. “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,” said Faisal Falaknaz, chief financial and sustainability officer at Aldar Properties.
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