DUBAI - Aldar Properties, Abu Dhabi's largest developer, will move its existing debt to a new subsidiary, its chief financial officer said on Wednesday.
Aldar announced earlier on Wednesday that it is spinning off recurring-revenue assets worth 20 billion dirhams ($5.45 billion) into a new, fully-owned subsidiary as it seeks to achieve operational efficiencies and raise cheaper capital.
The new subsidiary, Aldar Investments, has been assigned a Baa1 rating by Moody's, a notch above Aldar's, and plans to issue new, benchmark sukuk, or Islamic bonds, shortly.
Shares in the new subsidiary could be sold through an initial public offering in the future, Aldar Properties Chief Financial Officer Greg Fewer told reporters.
($1 = 3.6730 UAE dirham)
(Reporting by Stanley Carvalho; writing by Davide Barbuscia; editing by Jason Neely) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: email@example.com))