Aldar Prices $1 Billion Hybrid Bonds to Support Growth Strategy

Aldar Properties Headquarters 

                   

 Aldar Prices $1 Billion Hybrid Bonds to Support Growth Strategy

The UAE-based Aldar Group, listed on the Abu Dhabi Securities Exchange (ADX), announced the successful pricing of its $1 billion subordinated hybrid bond issuance.

In a statement on the ADX website, the Group said the issuance was met with strong demand from a broad base of global institutional investors, reflecting their confidence in the Group’s creditworthiness and future profit prospects as it continues to deliver on its transformative growth strategy.

Aldar intends to use the proceeds from this issuance to support its ambitious growth agenda and strategic priorities. These priorities include strengthening its land portfolio, expanding its development and retention asset portfolio, executing strategic acquisitions, and optimizing its debt structure to enhance its overall credit profile and maintain its borrowing capacity to finance future strategic growth initiatives.

Underscoring the strong global confidence in Aldar Group’s financial strength and impressive track record, the issuance was oversubscribed, with total subscriptions exceeding US$4.2 billion. This was supported by broad and robust participation from global institutional investors across diverse geographic markets.

The final allocation of the issuance demonstrated a notable geographic diversity in the investor base, with the Middle East and North Africa (MENA) region accounting for 31% of total subscriptions, followed by the United Kingdom at 27%, North America at 24%, Asia at 10%, and Europe at 8%.

These unsecured, subordinated bonds have a maturity of 30.25 years and are non-callable for 7.25 years, offering an initial yield of 5.95% and a coupon rate of 5.875%. Due to their hybrid nature, these securities combine features of both debt and equity, with semi-annual payouts and the option to defer payments. The issuance is expected to close on January 14, 2026, subject to customary closing conditions.

These hybrid bonds have been rated Baa3 by Moody’s, one notch below Aldar Group’s corporate credit rating of Baa2 (with a stable outlook).

This rating reflects the Group’s strong financial position and high liquidity levels, which stood at AED 29.7 billion as of September 30, 2025. It also underscores Aldar’s established reputation as a trusted strategic partner of the Abu Dhabi government in delivering major projects.

The structure of this new issuance is identical to the successful $1 billion hybrid bond issuance that the group completed in January 2025.

With the addition of the $1 billion raised through this latest transaction, the total capital secured by the group in 2025 will reach $5.1 billion (including $1.5 billion from hybrid bond issuances), providing a strong foundation for its liquidity and enhancing the efficiency of its financial structure to continue its sustainable growth trajectory.