Wam
Aldar Properties said the $500 million sukuk (Islamic bond) issued by its subsidiary was oversubscribed more than seven times.
The sukuk order book of Aldar Investment Properties reached $3.6 billion, with regional and global investors making up 61 percent and 39 percent of the requests, the developer said in a statement.
Sukuk are sharia-compliant bonds that were developed as an alternative to conventional bonds, which are not considered permissible by many Muslims as they pay interest and may finance businesses involved in activities not allowed under Islamic law.
The sukuk has coupon rate of 5.25 percent, priced at a spread of 110 basis points over the 10-year US Treasury, a yield matching its $500 million green sukuk spread finalised in May 2024. The issuance falls under the $2 billion programme launched in May 2023.
The funds will be used for early redemption of a sukuk maturing in September 2025 and the repayment of outstanding bank debt, the statement said.
Aldar has raised AED16.3 billion in new liquidity across its capital structure since the start of the year to support sustainable growth.
Abu Dhabi’s largest developer said net profit surged 47 percent year on year to AED6.5 billion, driven by strong demand for new launches and existing inventory.
