The UAE-based Aldar Group, listed on the Abu Dhabi Securities Exchange, announced the successful pricing of its $1 billion subordinated hybrid bond issuance.
The group said in a statement on the Abu Dhabi stock exchange website that this issuance received strong demand from a broad base of global investment institutions, reflecting their high confidence in the group’s creditworthiness and future profit prospects, as it continues to achieve the targets of its transformative growth strategy.
The company intends to use the proceeds from this issuance to support its ambitious growth agenda and implement its strategic priorities, which include strengthening its land portfolio, expanding its portfolio of development and retention assets, executing strategic acquisitions, and improving the efficiency of its debt structure to enhance its overall credit record and maintain its ability to borrow when needed to finance its future strategic growth initiatives.
Affirming the strong global confidence in Aldar Group’s financial strength and strong track record, subscription requests exceeded the supply, with total requests surpassing US$4.2 billion, supported by broad and strong participation from global investment institutions across diverse geographical markets.
The final allocation of the issue showed a remarkable geographical diversity in the investor base, with the Middle East and North Africa region accounting for 31 percent of total applications, followed by the United Kingdom at 27 percent, North America at 24 percent, then Asia at 10 percent, and Europe at 8 percent.
Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar, said: “The strong demand for our hybrid bond issuance, and the outstanding results we achieved, underscore the depth of investor confidence in the Group’s creditworthiness and its disciplined financial strategy. These hybrid bonds provide significant support to our capital structure by securing flexible, long-term funding, which helps maintain our investment-grade rating and our ability to use high-quality debt to support our future growth plans. This move gives us the flexibility to confidently pursue our priorities and expansion projects, capitalizing on the strong momentum in our business and the overall robust fundamentals of the real estate market.”
These unsecured, subordinated bonds have a maturity of 30.25 years and are non-callable for 7.25 years, with an initial yield of 5.95 percent and a coupon rate of 5.875 percent. Due to their hybrid nature, these securities combine features of both debt and equity, with semi-annual payouts and the option to defer payments. The issuance is expected to close on January 14, 2026, subject to customary closing conditions.
As a debt instrument, this issuance does not entail any dilution of the holdings of the current shareholders of the firm.
At the same time, Moody's treats this issuance as 50 percent equity and 50 percent debt, which enhances the overall efficiency of the group's credit profile and maintains its ability to leverage premium debt to finance future strategic growth initiatives.
These hybrid bonds received a Baa3 credit rating from Moody’s, which is one notch below the corporate credit rating of Aldar Group, which is Baa2 (with a stable outlook).
This rating is based on the Group’s strong financial solvency and high liquidity levels, which amounted to AED 29.7 billion as of September 30, 2025. This rating also reflects the firm position of the company as a trusted strategic partner of the Abu Dhabi government in implementing major projects.
The issuance was structured in accordance with Regulation 144A and Regulation S, with Citibank acting as the sole structuring advisor, global coordinator, and joint bookrunner for this international transaction. A select group of financial institutions also participated as joint lead managers and bookrunners, including Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, Intesa Sanpaolo (IMI), JPMorgan Chase, Mashreq Bank, Société Générale, Standard Chartered, and National Bank of Ras Al Khaimah.
The structure of this new edition is identical to the house’s successful $1 billion hybrid edition, which the group successfully completed in January 2025.
With the addition of the $1 billion raised through this latest transaction, the total capital that the company has successfully secured during 2025 rises to $5.1 billion (including $1.5 billion from hybrid bond issuance financing), which provides a strong support for its liquidity and enhances the efficiency of its financial structure to continue its sustainable growth.
