The National
Aldar has mandated Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank to lead the sukuk deal. Christopher Pike / The National Reporter
Aldar has mandated Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank to lead the sukuk deal. Christopher Pike / The National Reporter
Aldar Investment Properties, a fully-owned subsidiary of Abu Dhabi’s biggest listed developer Aldar Properties, plans to issue a 10-year, dollar-denominated sukuk to refinance its existing debt.

Aldar has embarked on a series of fixed income investor meetings in Europe, Asia and the Middle East starting from October 10, it said in a statement on the Abu Dhabi Securities Exchange, where its shares trade.

The company has mandated Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank to lead the potential deal. Other banks involved in the transaction include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital and Sharjah Islamic Bank.

Proceeds of the intended issue will be used to refinance existing debt and the offer is expected to be priced on October 15, subject to market response, with the results being announced as soon as reasonably appropriate, Aldar said.

READ MORE
Aldar plans two new developments amid stronger market sentiment

New homes on the way as Dh2 billion development is launched in Abu Dhabi

Aldar Properties revenue rises but Q3 net profit slips

Aldar Investments was launched in September last year with a portfolio of Dh20 billion of revenue-generating assets.

About 5,000 residential units and 500,000 square metres of retail and commercial space were transferred into the new vehicle, along with Dh6bn of existing debt.

The wholly-owned asset management arm of Aldar Properties also subsequently took full ownership of Etihad Plaza and Etihad Airways Centre in a Dh1.2bn deal in February and took possession of the Al Jimi Mall extension in Al Ain in March. It also sold the 23-storey Al Murjan mixed-use tower at Danet Abu Dhabi. The company's portfolio currently has an occupancy rate of about 90 per cent.

Aldar Investments is rated Baa1 by Moody’s.

The sukuk market is expected to witness its fourth consecutive annual increase this year, with total issuance reaching about $130bn, ratings agency Moody's Investors Service predicted in August. It said that total sukuk volumes grew to $87.4bn in the first half of the year, from $64bn in the same period of 2018.