(MENAFN- Khaleej Times)
Aldar Properties has successfully closed an Dh9 billion ($2.45 billion) sustainability-linked syndicated senior unsecured committed multi-tranche revolving credit facility (RCF). The facility represents the largest sustainability-linked, syndicated deal by a Real estate company in the Middle East.
The transaction follows Aldar's successful and inaugural Dh3.67 billion ($1 billion) hybrid notes issuance completed earlier this month.“Together, these transactions reinforce Aldar's capital structure, financial flexibility and resilience, ensuring the company remains well-positioned to execute against its ongoing growth initiatives as part of its ambitious growth strategy,” the company said in a statement.
The facility is six times larger than any other single bank financing the company has done in its recent history. Moreover, the facility, arranged at a historically tight credit spread for Aldar, reinforces balance sheet resilience, providing substantial committed liquidity at a time of rapid growth across the company's property development and investment platforms.
Faisal Falaknaz, group chief financial and sustainability officer at Aldar, said:“This syndicated facility is a significant milestone that underscores Aldar's financial strength and our ability to attract funding from a wide range of high-quality institutional sources. It reflects the trust and confidence that global and regional banks place in our business model and trajectory of accelerated growth. This facility, together with our recent hybrid issuance, ensures we remain well-positioned to drive our strategic initiatives, capitalise on emerging opportunities, and create sustainable value for all our stakeholders.”
The syndication attracted orders from 15 prominent international and regional financial institutions, including a number of new financiers to Aldar's credit panel. Participating banks include Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic, Emirates NBD, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, JPMorgan, Mashreq, National Bank of Kuwait, National Bank of Ras Al Khaimah, and Sharjah Islamic Bank.
The facility, which has a five-year tenor and incorporates both conventional and Islamic tranches across UAE dirham and US dollar currencies is both committed and revolving linked to a floating rate to capitalise on conducive market conditions. It supports Aldar's operational and financial flexibility, providing additional financial firepower to support its growth ambitions.
This facility is also linked to sustainability-linked KPIs, showcasing Aldar's firm commitment to measurable ESG targets and responsible business practices. By integrating sustainability into its financing framework, Aldar reinforces its position as a leader in sustainable growth while supporting its broader ambitions of creating long-term value for stakeholders.
In January 2025, Moody's reaffirmed Aldar's Baa2 credit rating with a stable outlook. The milestone facility enhances Aldar's liquidity position further, with available liquidity of Dh26.9 billion (pro forma for this syndication) as of 30 September 2024, comprising free and unrestricted cash and bank balances totaling Dh9.5 billion and undrawn committed revolving credit facilities of Dh17.4 billion (pro forma for this syndication) with an average debt maturity of 5.2 years.
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