Aldar Properties subsidiary, Aldar Investment Properties (AIP), has tapped into the capital markets with a successful issuance of a $500 million green sukuk. This issuance leverages Aldar's $2 billion Trust Certificate Issue Programme established in 2023.
The ten-year sukuk marks AIP's second foray into the green sukuk market, following their inaugural $500 million issuance in May 2023. The latest offering attracted significant investor interest, garnering over four times the initial issuance amount. This strong demand reflects growing confidence in Aldar's commitment to sustainability initiatives and its financial strength.
The competitive interest in the sukuk resulted in a tight credit spread of 110 basis points, the lowest ever secured by AIP. The issuance also included a coupon rate of 5. 500 percent. The proceeds from the sukuk will be used for refinancing existing debt, allowing Aldar to extend its debt maturity profile and improve its financial flexibility.
"The overwhelming response to our latest green sukuk issuance reflects the market's confidence in Aldar and the trust that exists in our ability to deliver our wide-ranging sustainability initiatives, " said Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties.
The issuance of the green sukuk aligns with Aldar's commitment to environmental, social, and corporate governance (ESG) principles. The funds raised will be directed towards projects that demonstrably promote sustainability, furthering Aldar's efforts to contribute to a greener future.
This successful issuance strengthens Aldar's position as a leading real estate developer in the region. With its robust financial performance and commitment to sustainability, Aldar is well-positioned to capitalize on future growth opportunities. The company's ability to secure financing at competitive rates reflects its financial strength and creditworthiness, providing a solid foundation for future endeavors.