Aldar Investments’ latest $500m sukuk was listed on the Abu Dhabi Securities Exchange (ADX) on 7 November.
The sukuk has a tenor of 10 years and a coupon rate of 3.875 per cent, the lowest rate ever achieved by Aldar. The transaction, which marked the first 10-year public sukuk offering by an Abu Dhabi-based issuer, was more than six times oversubscribed, with global investors accounting for 71 per cent of the total transaction allocation.
The net proceeds of the offering will be used to refinance existing debt.
Aldar mandated Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank as joint global coordinators and joint lead managers, along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital and Sharjah Islamic Bank as additional joint lead managers.
The latest sukuk issuance follows a successful debut seven-year $500m sukuk that was issued by Aldar Investments in 2018, and was the first corporate sukuk to trade on the ADX. Similar to the 2018 issuance, the new sukuk will also be traded on the Euronext Dublin exchange.
Aldar Investments is a fully owned subsidiary of Aldar Properties. It owns and manages a AED20bn ($5.45bn) portfolio of income-generating residential, retail, commercial and hospitality assets.
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