Abu Dhabi – Mubasher: Aldar Properties said its fully owned subsidiary, Aldar Investment Properties LLC, has succeeded to issue a seven-year sukuk worth $500 million.
The new sukuk was extremely competitively priced, with a profit rate of 4.75%, Aldar said in a filing to the Abu Dhabi Securities Exchange (ADX).
The Islamic bonds’ debt maturity will be extended to more than five years at an average interest rate of 3.9% through bank facilities, which highlights strength and resilience of the company’s balance sheet, according to the filing.
The ADX-listed firm noted that proceeds of the sukuk issuance will be used to refinance its existing debt.
Aldar Properties previously announced that its Investment unit was planning to issue a five- to ten-year fixed rate US dollar denominated sukuk.
Earlier this month, Aldar Properties unveiled it created the region’s largest diversified real estate investment company with over AED 20 billion ($5.4 billion) in assets.
The new investment unit, Aldar Investment Properties LLC, aims to manage greater operational and capital efficiencies to unlock value for shareholders and create the foundation for a new phase of accelerated growth.
Aldar Investments was rated by Moody’s at BAA1, one notch above Aldar, which will enable it to access capital on more favourable terms independently of Aldar and allow it to issue a new sukuk in the near future.
