Aldar Properties Secures AED 9 Billion Sustainability-Linked Syndicated Credit Facility For Growth Initiatives

Aldar Properties has secured an AED9 billion (US$2.45 billion) sustainability-linked revolving credit facility. This deal is the largest of its kind by a real estate firm in the Middle East. It follows Aldar's recent AED3.67 billion ($1 billion) hybrid notes issuance, enhancing its financial structure and flexibility to support growth initiatives.

The credit facility, six times larger than any previous single bank financing for Aldar, was arranged at a historically low credit spread. This reinforces Aldar's balance sheet resilience, providing substantial liquidity during a period of rapid expansion in property development and investment. The facility is linked to sustainability KPIs, demonstrating Aldar's commitment to ESG targets.

Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, stated, "This syndicated facility is a significant milestone that underscores Aldar's financial strength and our ability to attract funding from a wide range of high-quality institutional sources. It reflects the trust and confidence that global and regional banks place in our business model and trajectory of accelerated growth."

The syndication attracted orders from 15 major international and regional banks, including new financiers to Aldar's credit panel. Participating institutions include Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank (P.J.S.C.), Emirates NBD Bank (P.J.S.C.), First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, J.P. Morgan, Mashreq, National Bank of Kuwait, National Bank of Ras Al Khaimah, and Sharjah Islamic Bank.

The facility features a five-year tenor with both conventional and Islamic tranches available in AED and USD currencies. It is committed and revolving with a floating rate to leverage favourable market conditions. This setup supports Aldar's operational flexibility while providing additional financial resources for its growth plans.

Falaknaz added that this facility ensures Aldar remains well-positioned to drive strategic initiatives and seize emerging opportunities while creating sustainable value for stakeholders. The combination of this facility with the recent hybrid issuance strengthens Aldar's ability to execute its ambitious growth strategy effectively.

Aldar's successful transactions highlight its robust capital structure and financial resilience. These efforts ensure the company can continue pursuing growth initiatives aligned with its strategic objectives while maintaining strong relationships with global financial institutions.

With inputs from WAM