Aldar Investment Properties, the real estate management unit of the emirate’s largest listed developer, Aldar Properties, has raised $290 million as it continues to pursue its sustainability agenda.
The company, which owns and manages a Dh30.7 billion ($8.36 billion) portfolio of properties, has tapped its existing green sukuk - sharia-compliant bonds - maturing in 2034 and 2035 in the latest round of financing, Aldar said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.
The order book for the deal, which was 2.8 times oversubscribed, hit $830 million. Regional investors represented 52 per cent and international investors 48 per cent of the total transaction allocation.
“Aldar’s ability to attract strong demand from a broad base of investors underlines confidence in our strategy and investment-grade standing,” said Faisal Falaknaz, chief financial and sustainability officer.
Proceeds from the latest funding round will be used in line with the company’s green finance framework, the company said. This covers investment in sustainable projects, including green buildings, property upgrades to enhance energy efficiency, sustainable water management, pollution control measures and renewable energy sources.
Aldar has invested more than Dh150 million in retrofitting 69 properties to optimise energy efficiency and reduce emissions, it added.
Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, JP Morgan and Standard Chartered acted as joint lead managers and joint bookrunners on the deal.
The latest issuance follows several rounds of capital-raising by Aldar to diversify its funding sources. The company has close to Dh30 billion of available liquidity, which provides a substantial buffer against market swings while preserving flexibility to fund sustainable growth.
In May last year, Aldar Investment Properties raised $500 million through its debut green sukuk to acquire more sustainable assets.
The 10-year Sharia-compliant issuance was part of the company’s $2 billion financing programme to support growth, in line with the UAE Net Zero by 2050 strategic initiative and Aldar’s plan to be a net zero carbon business by 2050, the company said at the time.
Aldar Properties plans to hit a sales target of Dh31 billion, Mr Falaknaz told The National in an interview in March.
“By strengthening liquidity on a countercyclical basis, we are ensuring the flexibility to pursue growth while remaining resilient through cycles and committed to our sustainability agenda,” he said on Wednesday.
