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Aldar Properties’ investment arm issues $500m green sukuk

Aldar Properties’ investment arm issues $500m green sukuk
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Abu Dhabi – Mubasher: ​Aldar Investment Properties (AIP), a subsidiary of Aldar Properties, has issued a $500 million green sukuk.

The 10-year issuance is a part of a $2 billion trust certificate issue programme launched in 2023, according to a press release.

The new issuance is priced at a coupon rate of 5.50%. it was oversubscribed by 400%, attracting demand from regional and international investors.

The proceeds of the issuance will be used in accordance with Aldar's Green Finance Framework, which supports investments in sustainable projects to help the company reach its net-zero carbon emissions target across its operations by 2050.

The recent issuance is AIP’s second green sukuk, after a $500 million issuance in May 2023.

Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar Properties, said: "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,” Falaknaz added.

In a similar move, Aldar has initiated a buy-back of the Sukuk maturing in September 2025, offering existing investors the chance to engage in the new issuance. Aldar intends to utilise the proceeds from this endeavour to refinance existing debt and extend its debt maturity profile.

AIP boasts a diverse real estate portfolio valued at over AED 25 billion, supported by a strong financial position and a Baa1 investment-grade credit rating from Moody's.

The company maintains its leadership in sustainability, achieving 47 points on the Dow Jones Sustainability Index (DJSI) and holding a low-risk score of 15.9 on the Sustainalytics Risk Index.

It is worth noting that AIP’s parent company Aldar Properties posted a net profit of AED 1.57 billion in the first quarter (Q1) of 2024, higher by 88% than AED 835.79 million in Q1-23.