It's getting a bit repetitive to say that the US dollar market is replete with liquidity and that issuers are taking advantage.

But it continues to be the case, with Aldar Investment Properties the latest issuer to reap the benefits when it returned to the primary market on Tuesday to fund a tender offer.

The Abu Dhabi real estate management company, rated Baa1 by Moody's, printed a US$500m no-grow 10-year green sukuk offering inside fair value.

"The sense I get is that sukuk for that sort of name is well bid, with some international appetite as well," said a banker familiar with the deal.

There have been a smattering of corporate sukuk offerings in recent weeks, including from Tabreed, Saudi Electricity, Saudi Real Estate Refinance Company and Ma'aden. Still, demand outweighs supply and not even a choppy backdrop dented investors' desire to buy the Aldar sukuk.

"It was bog standard," said the banker about the deal.

It was, in fact, a replica of Aldar's senior deal last year, right down to the size, tenor, structure and the liability management exercise. Even the IPTs and final reoffer spread were the same.

As with last year, books opened on this latest deal at the 140bp area over Treasuries. Aldar's US$500m 5.5% May 2034 green sukuk were at a G-spread of 105bp, according to LSEG data. The lead put fair value at plus 115bp.

With demand reaching more than US$3.1bn, the leads tightened pricing to plus 110bp.

Proceeds will go towards an any-and-all tender offer on Aldar's US$500m 4.75% September 2025s. This was Aldar's third green offering. It was also the Aldar group's second US dollar transaction of the year, with parent company Aldar Properties issuing a hybrid in January.

JP Morgan and Standard Chartered were joint global coordinators, along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq and Sharjah Islamic Bank as lead managers and bookrunners.

Source: IFR