The latest US$500 million sukuk issued by Aldar Investment Properties LLC (“Aldar Investments”), a 100% owned subsidiary of Aldar Properties PJSC (“Aldar”), was listed on the Abu Dhabi Securities Exchange (ADX) on 07 November 2019.
The fixed-rate, US dollar-denominated sukuk, with a tenor of 10 years, carries a coupon rate of 3.875%. The issue was six times oversubscribed, with global investors accounting for 71% of the total transaction allocation.
Aldar Investments owns and manages an AED 20 billion diversified portfolio of high-quality income-generating residential, retail, commercial and hospitality assets.
This sukuk issuance follows a successful debut 7 year US$500 million sukuk that was issued by Aldar Investments in 2018, and was the first corporate sukuk to trade on the ADX. Similar to the 2018 issuance, the new sukuk will also be traded on the Euronext Dublin exchange.
This is the third listing of debt instruments on ADX this year following an earlier listing in October of the Emirate of Abu Dhabi Global Medium Term Note Programme with a total amount of USD 10,000,000,000 in three tranches and the listing of the first issuance of ESIC Sukuk Limited worth USD 600 million in August.
Commenting on the listing, H.E. Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, said: “The combined efforts of the UAE’s business sectors, in alignment with the nation’s Governmental leadership, have served to enhance the performance of our national economy where the financial markets play a fundamental role in that area”
His Excellency added: “this listing is yet another testament to ADX’s consolidated leadership and excellence in the region’s securities markets. ADX has established itself as a preferred destination for listing and trading in the region. ADX has world-class infrastructure for listing and trading of diversified stocks, and it provides investors with sustained performance while investing their savings in a legal, stable and regulatory environment that adopts the best international practices in disclosure and transparency.
Talal Al Dhiyebi, CEO of Aldar said: “The Aldar Investments sukuk issuance attracted strong global investor interest to finance a business with robust fundamentals. Secondary market liquidity plays a role in a successful transaction, and our dual listing on the Abu Dhabi Securities Exchange and Dublin Euronext provides connection to geographically diverse and deep pools of capital.”
The proceeds of the offering are being used to refinance existing debt. The issuance contributes to an optimal diversification of Aldar Investments’ funding base and extends Aldar’s overall duration of its liabilities.
Aldar Investments is currently rated Baa1 by Moody’s, the highest credit rating for a non-government corporate in the region reflecting its leading market position in Abu Dhabi, stable recurring revenue, high quality of diversified assets, high occupancies, diversified tenant based and strong operating model.
Aldar mandated Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank as Joint
Global Coordinators and Joint Lead Managers, along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital and Sharjah Islamic Bank as Joint Lead Managers.
With the recent launch of new innovative products and services, ADX significantly increased market value and attract wider ranges of investors to become the preferred listing and trading platform in the region. Transparency and performance of ADX’s product offering ensure a sustainable and secure investment environment with an advanced system of settlement and clearing. ADX also provides investors the opportunity to invest their savings in a legal environment that adheres to global best practices in disclosure, transparency and provides a stable economic and regulatory environment.
