Abu Dhabi-based real estate developer Aldar has successfully priced $1 billion in subordinated dated hybrid notes, marking a significant achievement in its long-term growth strategy. The issuance, which attracted strong demand from global institutional investors, underscores the confidence in Aldar’s financial outlook and credit strength.
The transaction was oversubscribed, with the orderbook peaking at $4.2 billion. The final allocations were distributed across regions, including 31% in the Middle East, 27% in the United Kingdom, 24% in North America, 10% in Asia, and 8% in Europe. This strong investor appetite highlights the robust international interest in Aldar’s credit profile and future growth potential.
Supporting Growth and Strategic Initiatives
Proceeds from the $1 billion hybrid notes issuance will be used to support Aldar’s growth agenda. This includes landbank replenishment, expansion of its develop-to-hold portfolio, strategic acquisitions, and optimization of its debt profile to enhance its overall credit standing. The hybrid notes will also help preserve debt capacity for future growth initiatives, ensuring Aldar can continue executing its strategic priorities with confidence.
Aldar’s Group Chief Financial and Sustainability Officer, Faisal Falaknaz, emphasized that the strong demand reflects investor confidence in the company’s disciplined financial strategy and growth momentum. The hybrid notes, which are treated as 50% equity and 50% debt by Moody’s, will enhance Aldar’s capital structure, supporting both its investment-grade profile and future expansion.
Details of the Hybrid Notes
The unsecured, subordinated 30.25-year notes are non-callable for 7.25 years and carry an initial yield of 5.95%, with a coupon rate of 5.875%. The coupon payments will be distributed semi-annually and may be deferred. As a debt instrument, the issuance is non-dilutive for Aldar’s equity investors, ensuring that it does not impact shareholder ownership.
The issuance follows a similar $1 billion hybrid notes offering completed in January 2025. Aldar’s total funding raised during 2025 now stands at $5.1 billion, including $1.5 billion in hybrid capital, further strengthening the company’s liquidity and capital structure.
Aldar’s Strong Financial Position
Moody’s has assigned a Baa3 rating to the hybrid notes, one notch below Aldar’s corporate rating of Baa2 (Stable). This rating reflects Aldar’s strong liquidity, which stood at AED 29.7 billion ($8.1 billion) as of September 30, 2025, as well as its role as a key strategic partner to the Abu Dhabi government. The successful pricing of the hybrid notes further bolsters Aldar’s position in the competitive real estate market.
Aldar’s Growing Confidence and Strategic Growth
With the completion of this $1 billion hybrid notes issuance, Aldar is well-positioned to continue its growth trajectory and execute on its strategic priorities. The strong demand from global investors, coupled with its robust financial profile, signals continued confidence in Aldar’s long-term prospects. As the company advances its capital structure and preserves debt capacity for future initiatives, it remains a key player in the UAE’s real estate market.
