Abu Dhabi's leading property developer, Aldar Properties, has enlisted a consortium of banks to manage the issuance of a significant green sukuk. This Sharia-compliant financial instrument, the first of its kind for Aldar, marks a pivotal step towards the company's commitment to environmental sustainability.
The ten-year sukuk will be denominated in US dollars and is expected to be a benchmark size issuance, exceeding $500 million. HSBC and Standard Chartered Bank will serve as joint global coordinators for the offering, while a team comprising ADCB, ADIB, Dubai Islamic Bank, Emirates NBD Capital, FAB, Mashreq, and Morgan Stanley will act as joint lead managers and bookrunners.
Investor meetings are currently underway to gauge interest in the sukuk. The proceeds from the issuance will be specifically allocated towards financing or refinancing green projects that align with Aldar's environmental goals.
This innovative financing strategy reflects Aldar's growing focus on environmental stewardship. The company has implemented various sustainability initiatives in recent years, including incorporating energy-efficient features in its developments and prioritizing eco-friendly construction practices. The issuance of a green sukuk signifies a further step in this direction, enabling Aldar to attract capital from environmentally conscious investors.
The news of the green sukuk offering has been met with positive reactions from industry experts. Analysts commend Aldar's initiative, highlighting its potential to set a precedent for other real estate developers in the region. The issuance is also viewed as a positive development for the growth of the green sukuk market, which has gained significant traction in recent years.
With Abu Dhabi aiming to position itself as a global leader in sustainable finance, Aldar's green sukuk issuance is a welcome contribution. The offering is anticipated to generate substantial interest from both regional and international investors, solidifying Aldar's position as a sustainability-focused industry leader.