**Abu Dhabi**: Aldar Properties announces a successful 500 million dollars green bond issuance, attracting demand of 3.6 billion dollars. With a profit rate of 5.25%, the move strengthens its financial strategy while promoting sustainability through investments in energy-efficient projects and initiatives to reach net-zero emissions.
Aldar Properties, a subsidiary of Aldar Group, has recently announced the successful issuance of 500 million dollars in 10-year green bonds. This move is part of the company’s strategy to enhance its financial standing and commit to sustainability in alignment with its broader financial goals. The bond issuance attracted significant investor interest, with demand exceeding the amount offered by 7.2 times. Regional investors accounted for 61% of the interest, while international investors contributed the remaining 39%, resulting in total requests that surpassed 3.6 billion dollars.
The profit rate on the 10-year green bonds was established at 5.25%, with pricing set at a competitive spread of 110 basis points above U.S. Treasury bonds. This marks a continuation of Aldar’s strategy, as this issuance follows a green bond offering made by the company in May 2024, which achieved a notably low pricing margin within its public debt issuance.
Faisal Falaknaz, Chief Financial and Sustainability Officer of Aldar Group, commented on the successful raise, stating, “Despite global market fluctuations, Aldar maintains favorable levels of capital costs, reflecting our strong financial position and disciplined capital management. The wide interest in our recent green bonds issuance demonstrates the high level of confidence among investors in Aldar and our steadfast commitment to sustainable growth and delivering positive value to stakeholders and our communities,” as published by Al-Ittihad.
Aldar Properties’ positive reception from the market is further underscored by Moody’s affirmation of its investment ratings, with Aldar Group rated Baa2 and Aldar Properties rated Baa1, both carrying stable outlooks. This latest bond issuance is in fact the third of its kind for the company and is part of a larger credit certificate issuance programme that was initiated in 2023, with a total value of 2 billion U.S. dollars.
The funds raised from these green bonds will be allocated in accordance with Aldar Group’s green financing framework. This framework guides the company in directing investments towards green projects that include upgrading existing properties to enhance energy efficiency. To date, Aldar has invested over 150 million dirhams in the renovation of 67 properties, focusing on improving energy efficiency and reducing emissions as part of its ambitious commitment to achieving net-zero emissions.
Additionally, the issuance will facilitate the early repayment of bonds set to mature in September 2025, as well as the repayment of existing bank debts. Aldar has appointed JPMorgan and Standard Chartered as global coordinators and joint bookrunners for this bond offering, with support from a range of local banks including Abu Dhabi Commercial Bank and Emirates NBD Capital, among others.
This green bond issuance aligns with Aldar Group’s broader financial strategy aimed at enhancing sustainable growth, with the company having successfully raised 16.3 billion dirhams in new liquidity through its capital structure since the beginning of this year.
Source: Noah Wire Services
- https://www.aldar.com/en/news-and-media/aldar-investment-properties-issues-its-second-usd-500-million-green-sukuk – This URL supports the claim that Aldar issued a second green sukuk, which aligns with its sustainability goals and financial strategy. It highlights the issuance’s tight credit spread and strong investor interest.
- https://www.aldar.com/en/news-and-media/aldar-investment-properties-usd-500-million-green-sukuk-issuance – This link corroborates the details about Aldar’s third green sukuk issuance, including its oversubscription rate, pricing, and allocation of proceeds towards sustainable projects.
- https://www.thenationalnews.com/business/property/2025/01/31/us-based-asset-manager-apollo-invests-500m-in-aldar-properties – This article provides context for Aldar Properties’ recent financial activities, including significant investments from Apollo, which contributes to Aldar’s financial resilience and growth opportunities.
- https://www.thenationalnews.com/business/property/2025/01/13/aldar-sustainability-credit/ – This link outlines Aldar’s efforts to enhance its capital structure and liquidity through sustainability-linked financial instruments, which align with its broader financial strategy.
- https://www.thenationalnews.com/business/property/2025/01/13/aldar-sustainability-credit/ – This article discusses Aldar’s sustainability credit facility and its contribution to the company’s financial strength and commitment to sustainable practices.
- https://www.thenationalnews.com/business/property/2024/12/04/aldar-buys-commercial-tower-in-dubais-difc-for-626-million – This link provides additional context on Aldar’s strategic investments and asset acquisitions, which are facilitated by its strong financial position and partnerships like the one with Apollo.
- https://www.aletihad.ae/news/%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A/4559008/-%D8%A7%D9%84%D8%AF%D8%A7%D8%B1-%D9%84%D9%84%D8%A7%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1%D9%8A–%D8%AA%D8%B5%D8%AF%D8%B1-%D8%B5%D9%83%D9%88%D9%83%D8%A7-%D8%AE%D8%B6%D8%B1%D8%A7%D8%A1-%D8%A8%D9%82%D9%8A%D9%85%D8%A9-500-%D9%85%D9%84%D9%8A%D9%88%D9%86-%D8%AF – Please view link – unable to able to access data
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative mentions recent events, such as a bond issuance and a reference to actions by Aldar Group in May 2024, indicating it is up-to-date.
Quotes check
Score:
8
Notes:
The quote from Faisal Falaknaz, while attributed to a reputable source like Al-Ittihad, lacks online verification of its earliest reference. However, it appears original in this context.
Source reliability
Score:
8
Notes:
The narrative originates from Al-Ittihad, a regional publication. While it is not as widely recognized globally as major international news outlets like Bloomberg or Reuters, it is a reputable source within its region.
Plausability check
Score:
9
Notes:
The claims about the bond issuance and investor interest appear plausible given the context of financial news and are backed by specific financial figures and roles of associated parties.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative appears to be fresh and plausible, with a reliable source within its regional context. The lack of global recognition and inability to verify the earliest reference of the quote are minor drawbacks.
