Aldar raises $2.45bn in sustainability-linked credit facility

The financing came from a syndicate of 15 UAE-based and international lenders

Aldar-Expo City joint venture in Dubai. The Abu Dhabi developer aims to achieve net zero by 2050. Photo: Aldar

Aldar Properties, Abu Dhabi’s biggest listed developer, has raised Dh9 billion ($2.45 billion) in a sustainability-linked revolving credit facility from a syndicate of 15 UAE-based and international lenders.

The five-year facility boosts Aldar’s liquidity position to nearly Dh27 billion and incorporates both conventional and Islamic tranches across the UAE dirham and US dollar currencies, it said in a bourse filing on Monday.

The multi-tranche facility is linked to a floating rate to leverage favourable market conditions as well as sustainability-linked KPIs (key performance indicators), Aldar said.

It follows the company’s inaugural Dh3.67 billion hybrid notes issuance completed this month, which was oversubscribed 3.8 times, with total orders from global institutional investors exceeding $4.9 billion.

The latest round “underscores Aldar’s financial strength and our ability to attract funding from a wide range of high-quality institutional sources”, said Faisal Falaknaz, group chief financial and sustainability officer at Aldar.

“This facility, together with our recent hybrid issuance, ensures we remain well-positioned to drive our strategic initiatives [and] capitalise on emerging opportunities,” Mr Falaknaz said.

The move supports Aldar’s aim to achieve net zero by 2050 on the back of initiatives including retrofitting of buildings, low-carbon designs as well as using green concrete and green steel in construction.

Aldar’s Green Finance Framework also governs investment in sustainable projects, including green buildings, property upgrades to enhance energy efficiency, sustainable water management, pollution control measures and renewable energy sources.

The developer also raised $500 million through its debut green Islamic bond in 2023 as part of its sustainability agenda.

The global green finance market is projected to reach $28.71 trillion by 2033, from $4.18 trillion in 2023, according to a research report by Spherical Insights.

In the Gulf, developing the right structure and mechanisms for green finance can help the region unlock "$2 trillion in economic growth and more than a million jobs by 2030", according to Strategy& estimates.

Aldar's latest syndication attracted orders from a number of new financiers, the company said. Participating banks include Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, JP Morgan, Mashreq, National Bank of Kuwait, National Bank of Ras Al Khaimah and Sharjah Islamic Bank.

This month, Moody’s reaffirmed Aldar’s Baa2 credit rating with a stable outlook.