Abu Dhabi-based property developer Aldar has successfully priced $1 billion in subordinated dated hybrid notes, attracting strong demand from global institutional investors and reinforcing confidence in the company’s financial strength and growth strategy.
The issuance was heavily oversubscribed, with the peak order book reaching $4.2 billion. Investors from the Middle East accounted for 31 per cent of allocations, followed by the United Kingdom at 27 per cent, North America at 24 per cent, Asia at 10 per cent and Europe at 8 per cent, highlighting the broad international appetite for Aldar’s credit.
Aldar said proceeds from the transaction will support its growth agenda, including landbank replenishment, expansion of its develop-to-hold portfolio, strategic acquisitions and further optimisation of its debt profile. The company also aims to preserve borrowing capacity to fund future expansion.
Faisal Falaknaz, Aldar’s group chief financial and sustainability officer, said the outcome reflected investor confidence in the company’s disciplined financial strategy and long-term outlook. He said the hybrid structure strengthens Aldar’s capital base while maintaining flexibility and supporting its investment-grade credit profile.
The unsecured, subordinated notes have a 30.25-year maturity and are non-callable for 7.25 years. They will carry an initial yield of 5.95 per cent and a coupon rate of 5.875 per cent, with semi-annual payments that may be deferred. The transaction is expected to close on January 14, 2026, subject to standard conditions.
Hybrid notes combine characteristics of both equity and debt. Moody’s treats the issuance as 50 per cent equity and 50 per cent debt, allowing Aldar to strengthen its balance sheet without diluting existing shareholders. As a result, the issuance enhances Aldar’s credit profile while preserving capacity for future senior borrowing.
Moody’s assigned the notes a Baa3 rating, one notch below Aldar’s corporate rating of Baa2 with a stable outlook. The agency cited Aldar’s strong liquidity position, with AED 29.7 billion available as of September 30, 2025, and its role as a strategic partner to the Abu Dhabi government.
The transaction was marketed globally under 144A and Regulation S formats. Citi acted as sole structuring adviser, global coordinator and joint bookrunner. Other joint lead managers included Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, IMI-Intesa Sanpaolo, J.P. Morgan, Mashreq, Société Générale, Standard Chartered and RAKBANK.
The structure mirrors Aldar’s previous $1 billion hybrid issuance completed in January 2025. The latest fundraising brings Aldar’s total funding raised in 2025 to $5.1 billion, including $1.5 billion in hybrid capital, strengthening its liquidity position and supporting continued expansion across its real estate and investment platforms.
Aldar said the successful transaction positions the company to continue executing its development pipeline amid strong momentum in the regional property market.
