Aldar issues hybrid bonds worth one billion dollars

Aldar Properties has succeeded in pricing its first hybrid bond issue, worth one billion dollars, after it received strong demand and great interest from a wide range of regional and international investors.

This issuance by Aldar Group, as a public joint stock company, represents the largest traditional hybrid bond issuance in the Middle East.

Aldar stated, in a statement yesterday, that the deal achieved the highest credit rating and the narrowest price spread when issuing at the level of hybrid bonds issued by companies operating in the Central and Eastern Europe, Middle East and Africa regions.

The proceeds from the issuance will be used to support the continuation of the group’s comprehensive transformation and growth plan, and the implementation of its strategic priorities, including the renewal and expansion of land stock, the portfolio of asset development for retention and acquisition opportunities.

The strong demand from investors was tangible evidence of the firm confidence in the financial strength of Aldar Properties Group, its general direction, its strategic plans, and its promising potential for growth and adding value, as demand for bonds exceeded the supply by 3.8 times, with the total value of orders exceeding $4.9 billion from a wide segment of institutional investors. From diverse geographical regions. The Middle East and North Africa region accounted for 41% of the total demand, while the United Kingdom contributed 38%, Europe contributed 9%, North America 8%, and Asia contributed 4%.

Aldar Properties Group’s Chief Financial and Sustainability Officer, Faisal Falaknaz, said: “The great interest in this issuance from a wide segment of international institutional investors is evidence of the strong confidence in Aldar’s vision, plans and strategic directions,” noting that the issuance of hybrid bonds comes as a transformative step that supports… Continuity of Aldar’s efforts, to enable it to achieve its growth aspirations by improving its capital structure, laying solid foundations to continue implementing its strategy, and achieving better value for all stakeholders in the coming years.