Abu Dhabi's Aldar plans international bond sale -sources

Aldar last issued international sukuk, or Islamic bonds, in 2019

  
Headquarters of Aldar is seen in Abu Dhabi, United Arab Emirates, December 24, 2018. Reuters/Hamad I Mohammed

Headquarters of Aldar is seen in Abu Dhabi, United Arab Emirates, December 24, 2018. Reuters/Hamad I Mohammed

REUTERS

DUBAI- Abu Dhabi's largest property developer, Aldar, is planning an international bond issuance soon, two sources familiar with the matter said.

The planned debt sale comes as Gulf borrowers line up to tap the international debt markets to bolster finances hit by the COVID-19 pandemic and low oil prices.

Aldar, the state-linked builder of Abu Dhabi's Formula One circuit, did not immediately respond to a request for comment.

Ripe market conditions have led to record-setting deals in recent weeks, including the region's lowest-yielding Additional Tier 1 issuance from Saudi Arabia's biggest lender, National Commercial Bank, and the lowest coupon on Gulf bank senior bonds from Qatar National Bank, the Gulf's biggest lender. 

Oman and Bahrain, the region's weakest credits, were the first Gulf sovereigns to tap the market this year. After a deal that fell short of expectations in October, Oman raised $3.25 billion this month in an offering that was nearly five times oversubscribed. Bahrain's $2 billion issue was more than five times oversubscribed. 

Real estate was one of the sectors particularly hard-hit by COVID-19 and measures to stem the spread of the sometimes deadly disease.

Earlier this month, Aldar's shares surged after a framework agreement with the Abu Dhabi government under which the company will take on the management of 30 billion dirhams ($8.17 billion) worth of major projects in the emirate. 

Aldar last issued international sukuk, or Islamic bonds, in 2019, raising $500 million.

($1 = 3.6728 UAE dirham)

(Reporting by Yousef Saba and Davide Barbuscia; Editing by Steve Orlofsky) ((Yousef.Saba@thomsonreuters.com; +971562166204))

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