Aldar Prices USD 1.0 Billion Hybrid Notes To Support Growth Agenda And Strategic Priorities

Aldar has priced US$1.0 billion of subordinated dated hybrid notes, following strong demand from global institutional investors. The orderbook reached US$4.2 billion at peak, highlighting solid appetite for the Aldar hybrid notes and signalling confidence in Aldar’s credit strength and earnings outlook among international buyers.

The final allocation for the Aldar hybrid notes spans multiple regions, with investors from the Middle East taking 31%, the United Kingdom 27%, North America 24%, Asia 10% and Europe 8%. This geographically diverse participation supports Aldar’s access to deep funding pools across developed and emerging capital markets.

The Aldar hybrid notes are unsecured, subordinated instruments with a 30.25-year maturity and a first call after 7.25 years. They carry an initial yield of 5.95% and a coupon rate of 5.875%. Coupon payments are scheduled semi-annually, may be deferred, and the notes combine features of both debt and equity.

Moody’s has rated the Aldar hybrid notes at Baa3, one notch below Aldar’s Baa2 (Stable) corporate rating. The assessment reflects Aldar’s strong liquidity position, with AED29.7 billion available as of 30th September 2025, and Aldar’s recognised role as a strategic partner to the Abu Dhabi government.

From a capital perspective, Moody’s treats the Aldar hybrid notes as 50% equity and 50% debt. As a debt instrument, the issuance does not dilute existing Aldar shareholders. This treatment supports Aldar’s overall credit profile and helps preserve senior debt capacity for later strategic financing requirements and future growth plans.

Proceeds from the Aldar hybrid notes are intended to advance Aldar’s broader growth strategy. Planned uses include landbank replenishment, expansion of the develop-to-hold portfolio, targeted strategic acquisitions and optimisation of the debt profile. The funding also aims to maintain headroom to support future strategic growth initiatives across Aldar’s operating segments.

The structure of the Aldar hybrid notes mirrors Aldar’s earlier US$1.0 billion hybrid issued in January 2025. The latest US$1.0 billion transaction increases total funding raised by the group in 2025 to US$5.1 billion, including US$1.5 billion of hybrid capital, strengthening liquidity and the capital structure further.

The Aldar hybrid notes were marketed under Rule 144A and Regulation S. Citi acted as Sole Structuring Advisor, Global Coordinator and Joint Bookrunner. Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, IMI-Intesa Sanpaolo, J.P. Morgan, Mashreq, Société Générale, Standard Chartered and The National Bank of Ras Al Khaimah (RAKBANK) served as joint lead managers and bookrunners.

Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said, "The strong demand for our hybrid notes and the outcome we achieved reflect deep investor confidence in Aldar’s credit strength and disciplined countercyclical financial strategy. The hybrid enhances our capital structure with long-term, flexible funding while supporting our investment-grade profile and preserving senior debt capacity for further growth. 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."

The Aldar hybrid notes support Aldar’s transformational growth strategy while maintaining its investment-grade profile. With a large, diversified investor base, clear use of proceeds and treatment as part equity, part debt, the transaction reinforces Aldar’s financial flexibility and underpins future development activity in Abu Dhabi and wider international markets.

With inputs from WAM