Order book for Aldar hybrid notes hits nearly $5bn

Aldar Properties, which trades on the Abu Dhabi Securities Exchange (ADX), said the order book for its inaugural $1 billion hybrid capital issuance exceeded $4.9 billion from global institutional investors.

The issuance, oversubscribed by 3.8 times, will provide the developer with financial stability and resilience.

The proceeds will support the transformational growth plan and strategic priorities, including landbank replenishment and expansion, development to hold portfolio and acquisitions.

Aldar claimed that the “largest” conventional hybrid notes in the Middle East achieved the highest rating and the tightest credit spread at issuance in the central and eastern Europe, Middle East and Africa region.

The unsecured, subordinated 30-year notes will offer an initial yield of 6.6 percent, with a non-call period extending to 7 years. The coupon payments, distributed semi-annually, may be deferred for up to five years.

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The final allocation comprises investors from the Middle East and North Africa (41 percent), the United Kingdom (38 percent), Europe (9 percent), North America (8 percent) and Asia (4 percent).

The issuance was globally led and coordinated by Citi with Abu Dhabi Commercial Bank, Bank of China, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, JP Morgan, Mashreq, National Bank of Ras Al Khaimah, and Standard Chartered acting as joint lead bookrunners.

In January, Moody’s reaffirmed Aldar’s “Baa2” credit rating with a stable outlook and assigned a standalone credit rating of “Baa3” to the hybrid notes.