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Aldar Properties, rated Baa2 (Stable) by Moody’s, has issued $1 billion in subordinated hybrid notes to Apollo Global Management through a private placement, as it raises additional capital to support its growth.
The UAE master developer is listed as the issuer of the notes, which have a non-call period of 10.25 years.
Net proceeds have been deployed as equity into Aldar’s subsidiary, Aldar Investment Properties (AIP), which holds income-generating real estate assets.
This transaction includes repayment of $500 million perpetual subordinated notes issued by AIP to Apollo as part of the initial $1.4 billion debt and equity investment by the asset management firm into Aldar in 2022.
Following the transaction, Aldar’s ownership in AIP has now increased to 90%, with Apollo owning the remaining 10%.
The hybrid notes have been assigned a standalone credit rating of Baa3 by Moody’s, with 50% equity credit.
Citi acted as sole global coordinator, structuring agent, and rating advisor for the transaction.
The issuance brings Apollo’s total investment in Aldar to approximately $2.9 billion since 2022.
Faisal Falaknaz, Aldar’s Group Chief Financial and Sustainability Officer, said the transaction will support the company’s expansion through acquisitions and develop-to-hold pipeline that is valued close to $5 billion.
(Writing by Bindu Rai, editing by Daniel Luiz)
