Aldar Real Estate Investments raises USD500M through second green sukuk issue
(MENAFN) Aldar Real estate investment Company, a leading real estate management entity in Abu Dhabi and a subsidiary of Aldar Real Estate Company, recently announced the successful raising of USD500 million through its second issuance of green sukuks. This milestone is part of the company's broader credit certificates issuance program, which was initiated in 2023 with a total value of USD2 billion. In a statement obtained by Sky News Arabia, Aldar highlighted that this latest ten-year issuance marks its second foray into green sukuks, following its inaugural issuance of USD500 million in May 2023.
The ten-year green sukuk carries a profit rate of 5.5 percent and achieved the lowest credit margin ever recorded by the company, standing at 110 basis points. Notably, demand for this issuance surpassed supply by an impressive factor of four, underscoring strong interest and participation from both international and regional investors. This robust demand, coupled with the favorable credit spread, reflects Aldar's solid fundamentals and the market's confidence in the company's ability to fulfill its Environmental, Social, and Governance (ESG) commitments.
Aldar's successful issuance of green sukuks not only underscores its commitment to sustainable finance but also highlights its strong positioning in the market. The proceeds from these sukuks will likely be allocated towards financing environmentally friendly projects, further bolstering Aldar's reputation as a responsible corporate entity. With investor appetite for sustainable investments on the rise, Aldar's ability to attract significant interest in its green sukuks underscores its strategic foresight and market leadership in the realm of sustainable finance.
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