Aldar Properties, Abu Dhabi's largest listed developer, has finalised the pricing for its $1 billion hybrid notes as it intensifies efforts to boost its growth strategy.
Hybrid notes are securities that combine debt and equity features, offering fixed or floating rates of return, which can be paid either as interest or dividends.
The offer was oversubscribed by 3.8 times and orders hit $4.2 billion, as the issuance attracted “strong” participation from institutional investors, Aldar said on Friday. It is expected to close on January 14.
Aldar raised a total of $5.1 billion in 2025. Nearly a third of those investors came from the Middle East, followed by those from the UK, North America, Asia and Europe.
The unsecured and subordinated 30.25-year notes are non-callable for 7.25 years and will bear an initial yield of 5.95 per cent and a coupon rate of 5.875 per cent, Aldar said.
Coupon payments will be distributed semi-annually and may be deferred, it said.
The move is expected to boost Aldar's capital structure “with long-term, flexible funding while supporting our investment-grade profile and preserving senior debt capacity for further growth”, said Faisal Falaknaz, group chief financial and sustainability officer of Aldar.
“It positions us to continue executing our growth priorities and pipeline with confidence, building on the strong momentum across the business and the real estate market,” he said.
The latest issuance follows several rounds of capital-raising by Aldar to diversify its funding sources.
Last September, Aldar Investment Properties, Aldar's real estate management unit, raised $290 million as it continued to pursue its sustainability agenda. Before that, it raised $500 million through its debut green sukuk to acquire more sustainable assets.
Aldar is also continuing to expand its real estate portfolio. In October, it announced that it will build a series of new develop-to-hold properties in Yas Island and Al Shamkha – areas surrounding Abu Dhabi's Zayed International Airport – worth $1 billion, catering to the residential, commercial and logistics sectors.
Aldar also acquired two logistics assets from Khalifa Economic Zones Abu Dhabi for Dh570 million ($155.2 million), as it continues to expand its industrial portfolio.
