Home » Aldar Investment Properties issues second $500mln green sukuk

Aldar Investment Properties issues second $500mln green sukuk

by Madaline Dunn

Aldar Investment Properties (AIP), a real estate management company in Abu Dhabi and a subsidiary of Aldar Properties PJSC (Aldar), has issued a USD 500 million green sukuk as part of its USD 2 billion Trust Certificate Issue Programme established in 2023, it has announced. 

The proceeds of this issuance will be used in accordance with Aldar’s Green Finance Framework, which supports investments in sustainable projects, including green buildings, energy-efficient property upgrades, sustainable water management, pollution control measures, and renewable energy sources.  

This is AIP’s second green sukuk, following its inaugural USD 500 million sukuk that was issued in May 2023. 

This ten-year issuance is priced with a 5.500 per cent coupon rate and, according to AIP, achieved the tightest credit spread ever secured by Aldar at 110 basis points and was four times oversubscribed, attracting interest from both regional and international investors. 

Aldar also tendered a buy-back of the Sukuk maturing in September 2025, which it shared provides existing investors with the opportunity to participate in the new issuance, with Aldar utilising the proceeds to refinance existing debt and extend its debt maturity profile.

Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties, commented: “The overwhelming response to our latest green sukuk issuance reflects the market’s confidence in Aldar and the trust that exists in our ability to deliver our wide-ranging sustainability initiatives. It not only demonstrates our continued focus on driving positive environmental impact for the communities we serve, but also underscores our ability to deliver value for our investors over the long term with this issuance achieving the tightest credit spread we have ever priced.”

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