• The subordinated perpetual notes are part of Apollo’s US$1.4 billion strategic investment into Aldar’s transformational growth initiatives announced in February 2022
  • The notes represent the largest corporate hybrid private placement in the Middle East and North Africa region, with the longest non-call period of 15 years

Abu Dhabi, UAE: Aldar Investment Properties (“AIP”), a subsidiary of Aldar Properties, has issued US$500 million subordinated perpetual notes to Apollo Global Management (“Apollo”) priced at a coupon of 5.625% for an initial non-call period of 15 years.

The subordinated perpetual notes are part of Apollo’s US$1.4 billion investment of strategic capital into Aldar’s transformational growth initiatives, which was announced in February 2022. The commitment also includes a US$500 million investment into a land joint venture, as well as US$400 million in common equity and mandatory convertible preferred equity in AIP.

The subordinated perpetual notes have been assigned a Baa3 rating by Moody’s Investors Service, which has also reaffirmed AIP’s Baa1 rating, the highest credit rating for a non-government corporate in the region. The two-notch differential is consistent with the rating agency’s normal treatment of hybrids for investment grade companies.

Greg Fewer, Chief Financial and Sustainability Officer at Aldar Properties, commented: “The terms of this ground-breaking issuance reflect the unique strength of Aldar's best in class investment property platform. Our long-term strategic partnership with Apollo will accelerate Aldar’s transformative growth agenda, allowing us to build significant scale and enhance diversification of our high-quality portfolio of income-generating assets.”

The perpetual subordinated notes are the first to be issued by Aldar and the largest corporate hybrid private placement in the Middle East and North Africa (MENA) region, with the longest non-call period. 

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For further information, please contact:
Media
Obaid Al Yammahi
Aldar Properties

Investor Relations
Samar Khan
Aldar Properties

Cecille Asis
Brunswick 

About Aldar

Aldar Properties PJSC is the leading real estate developer and manager in the UAE with a diversified and sustainable operating model centered around two core businesses: Aldar Development and Aldar Investment.

Aldar Development is a master developer of integrated, liveable, and thriving communities across Abu Dhabi’s most desirable destinations, including Yas Island, Saadiyat Island, Al Raha, and Reem Island. It is responsible for developing, marketing, and selling Aldar’s diverse and strategic land bank and includes three businesses: Aldar Projects, which manages Aldar's fee-based development management business, including AED 45 billion of government housing and infrastructure projects; Aldar Ventures, which incubates and nurtures new business opportunities and innovation areas; and Aldar Egypt, the platform focused on developing mixed-use communities in Egypt.

Aldar Investment houses Aldar’s core asset management business comprising a portfolio of investment grade and income-generating real estate assets diversified across retail, residential and commercial segments. It also manages three core platforms: Aldar Education, Aldar Principal Investments, and Aldar Hospitality and Leisure. Aldar Education includes Aldar’s entire educational portfolio, including Aldar Academies, the leading education group in Abu Dhabi, with 20 schools which caters for the education of more than 26,000 students. Aldar Principal Investments, which includes several strategic businesses within the property management, facilities management, and construction sectors, comprises Provis, Khidmah, Pivot, and The Cloud. Aldar Hospitality and Leisure looks after Aldar’s portfolio of hotel and leisure assets, which are anchored around Yas Island and Saadiyat. It includes Aldar’s portfolio of 10 hotels, comprising over 2,900 hotel keys and managing operations across golf courses, beach clubs and marinas.

Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar operates according to high standards of corporate governance and is committed to operating a long term and sustainable business in order to provide ongoing value for its shareholders.

Aldar is driven by a vision to be a leading real estate developer and manager in the region by playing a key role in the development of quality, comfortable, desirable destinations that people can live in, work at and visit.

For more information on Aldar please visit www.aldar.com or follow us on: