The Aldar Group has successfully completed the pricing of its deferred subordinate hybrid bond issue, amounting to $1 billion. This issuance has seen strong demand from a wide range of global institutional investors, showcasing their high confidence in the group’s creditworthiness and future profit projections while it continues to meet its transformative growth strategy targets.
Aldar plans to utilize the proceeds from this offering to further its ambitious growth agenda and implement its strategic priorities. These priorities include enhancing its land portfolio, expanding its development and retention asset portfolio, pursuing strategic acquisitions, and optimizing its debt structure to bolster its overall credit profile, ensuring the capability to borrow when necessary to fund future strategic growth initiatives.
Reflecting strong global confidence in Aldar Group’s financial robustness and its solid track record, subscription requests significantly exceeded the available amount, surpassing $4.2 billion in total demand, supported by widespread and robust participation from institutional investors across diverse geographic markets.
The final allocation of the issuance displayed notable geographic diversity among the investors, with the Middle East and North Africa accounting for 31% of total orders, followed by the United Kingdom at 27%, North America at 24%, Asia at 10%, and Europe at 8%.
In this context, Faisal Al Qassimi, Chief Financial and Sustainability Officer at Aldar, stated that the strong demand for our hybrid issuance, along with our outstanding performance, illustrates investors’ deep trust in the group’s credit profile and disciplined financial strategy. This hybrid bond provides a qualitative boost to our capital structure by securing flexible long-term financing, which aids in maintaining our investment-grade rating and our capability to leverage senior debt for future growth plans. This step grants us the flexibility needed to confidently pursue our priorities and expansion projects, taking advantage of the strong momentum in our operations and the solid foundations of the real estate market as a whole.