The Aldar Group has announced the issuance of $1 billion in hybrid subordinated bonds for Apollo Global Management through a private placement aimed at providing additional capital to support its robust growth momentum.
This transaction enhances the company’s capital structure, as the bonds were issued at the group level, with the net proceeds allocated as liquid equity for Aldar Investment Real Estate, the branch managing income-generating property assets.
The deal includes the repayment of $500 million in perpetual subordinated bonds that Aldar Investment Real Estate had issued to Apollo as part of an initial investment structure combining debt and equity worth $1.4 billion in 2022. With this step, Aldar increased its ownership stake in Aldar Investment Real Estate to 90%, while Apollo retains the remaining 10%.
This issuance, which is designated for Apollo’s funds, clients, and affiliates, marks the largest private placement of hybrid corporate bonds in the region, raising Apollo’s total investments in Aldar to nearly $2.9 billion since 2022. The deal aims to bolster the financial flexibility of both Aldar and Aldar Investment Real Estate’s capital structures, underpin the financial stability of the group, and support its ambitious growth plans, while also delivering added value to Aldar’s shareholders.
Partnership
Faisal Faqnazz, Chief Financial and Sustainability Officer at Aldar Group, stated, “This transaction highlights the depth of our long-standing partnership with Apollo and reiterates the confidence major institutional investors have in our strategy, financial management, and upward growth trajectory. The issuance provides long-term, flexible capital, strengthening our balance sheet and enhancing our ability to capitalize on promising investment opportunities in our key markets. This step is particularly significant as it increases Aldar’s share of stable and recurring income generated by the high-quality, diversified portfolio of Aldar Investment Real Estate, which continues to expand through acquisitions and development and retention projects currently valued at around $5 billion.”
Solutions
Jamshid Ehsani, a partner at Apollo, remarked, “The completion of our fifth investment with Aldar clearly demonstrates Apollo’s ability to structure flexible capital solutions that effectively address the needs of our corporate clients and investors alike. Since our initial investment in 2022, Aldar has achieved significant milestones and ongoing successes, supported by strong performance and strategic portfolio expansion under the guidance of a seasoned management team. Our latest investment reflects Apollo’s steadfast commitment to Abu Dhabi and the region as a whole.”
The hybrid bonds issued for Apollo possess characteristics similar to Aldar’s most recent public issuance of $1.0 billion, with the distinction of a longer non-call period extending to 10.25 years.