Aldar Secures $2.5 Billion Credit Facility to Drive Growth
Aldar Properties, Abu Dhabi's largest real estate developer, has raised AED 9 billion ($2.5 billion) through a sustainability-linked revolving credit facility. This financing boosts the company’s total liquidity to AED 27 billion, reinforcing its position as a leader in the region’s real estate sector and supporting its ambitious growth strategies.
The multi-tranche facility, which has a five-year tenure, includes both conventional and Islamic financing options in AED and USD. Structured with a floating interest rate, the facility enables Aldar to benefit from favorable market conditions while aligning with sustainability-linked key performance indicators (KPIs).
Strong Global and Regional Participation
The credit facility attracted the participation of 15 leading financial institutions, reflecting strong confidence in Aldar’s financial stability and growth potential. The participating banks include global and regional heavyweights such as:
- Abu Dhabi Commercial Bank
- Ajman Bank
- Bank of China
- Citi
- Dubai Islamic Bank
- Emirates Islamic Bank
- Emirates NBD
- First Abu Dhabi Bank
- HSBC
- Intesa Sanpaolo
- J.P. Morgan
- Mashreq
- National Bank of Kuwait
- National Bank of Ras Al Khaimah
- Sharjah Islamic Bank
This robust participation underscores Aldar's reputation in both regional and international markets.
Enhanced Liquidity Position
As of September 30, 2024, Aldar's AED 27 billion liquidity comprises AED 9.5 billion in unrestricted cash and bank balances, along with AED 17.4 billion in undrawn committed revolving credit facilities. The average maturity of Aldar’s debt now stands at 5.2 years, ensuring a solid financial foundation for the company's operations and investments.
The new facility complements Aldar’s diverse financing strategies, further strengthening its balance sheet. This aligns with Aldar’s commitment to sustainable growth, supported by prudent financial management.
Innovative Sustainability-Linked Financing
The incorporation of sustainability-linked KPIs highlights Aldar's dedication to environmental, social, and governance (ESG) principles. By tying financial metrics to sustainability performance, the company underscores its long-term commitment to creating environmentally responsible and socially impactful developments.
This innovative approach aligns with the UAE’s broader focus on sustainability, particularly in light of global efforts to combat climate change and the country’s net-zero ambitions.
Milestones in Capital Markets
Earlier this year, Aldar successfully issued its inaugural $1 billion hybrid capital notes, receiving an overwhelming response from global institutional investors. The order book for this issuance exceeded $4.9 billion, underscoring the strong appetite for Aldar’s debt instruments.
The hybrid capital notes were assigned a standalone credit rating of “Baa3” by Moody’s, while the agency reaffirmed Aldar’s “Baa2” credit rating with a stable outlook. This consistent creditworthiness reflects the company's strong financial position and growth prospects.
A Strategic Move to Support Growth
The newly secured credit facility represents a strategic move for Aldar as it continues to expand its portfolio of residential, commercial, and mixed-use developments in the UAE and beyond. With a pipeline of projects aimed at addressing market demands, the company is well-positioned to capitalize on emerging opportunities while navigating market challenges.
Aldar’s ability to attract significant funding from top-tier financial institutions speaks to its robust governance, innovative strategies, and commitment to sustainability. The revolving credit facility also provides the flexibility needed to pursue new projects and investments that align with the company’s long-term vision.
Related: UAE Banks to Witness Strong Lending Growth in 2025 Amid Favorable Policies
Aldar’s recent accomplishments, including the successful capital markets issuance and the new credit facility, set the stage for continued growth and market leadership. By prioritizing sustainability, enhancing liquidity, and maintaining strong relationships with financial institutions, Aldar reinforces its commitment to driving value for stakeholders while contributing to the UAE’s economic development.
The developer’s strategic approach to financing, coupled with its unwavering focus on ESG principles, ensures that Aldar remains a key player in shaping the future of real estate in the region.
