ALDAR announces closure of AED 3.75 billion Sukuk
ALDAR Properties PJSC, the leading Abu Dhabi-based integrated property developer, today announced that it had priced its benchmark AED 3.75 billion 5-year Sukuk Al-Ijara at 3-month EIBOR (Emirates Inter-bank Offered Rate) plus175 basis points. The Issue has received an overwhelming response within the GCC and internationally, given current market conditions.
The Sukuk has been arranged by Abu Dhabi Commercial Bank, Barclays Capital, Credit Suisse, Dubai Islamic Bank, First Gulf Bank, Lehman Brothers, National Bank of Abu Dhabi, and Noor Islamic Bank.
“As one of the largest UAE-listed property development companies by market value, which now stands at AED 30.9 billion, or US$ 8.4 billion, we are expecting this new round of capital raising to further enable our already rapid growth. I am confident that investors near and far will feel assured that the company upholds global standards in transparency as well as having strong corporate governance initiatives in place,” said Ahmed Ali Al Sayegh, Chairman of ALDAR.
Shafqat Malik, Chief Financial Officer, ALDAR Properties added: ““Today’s closure of sukuk follows on the success of our first US$2.53 billion exchangeable Sukuk, issued in 2007. The transaction proved popular both at home and abroad.”
Prior to this announcement, ALDAR had already secured funding in excess of AED 34 billion (US$9.2 billion) to undertake the development projects through convertible bonds (sukuk), capital debt instruments and bilateral debt facilities.
ALDAR has been given a high rating of A3 by Moody’s and a solid A- by S&P.
ALDAR Properties has announced developments worth more than US$70 billion since its launch in 2005 including Central Market, Al Raha Beach, Coconut Island, Noor Al Ain, Al Gurm Resort, as well as the YAS Island project which includes a Warner Bros and a Ferrari theme park. ALDAR has the largest land bank in Abu Dhabi comprising over 34 million square meters, 100% earmarked for specific developments valued at AED 44.2 billion (US$12 billion) as at 31 December 2007. The company is one of the largest UAE-listed property developers by market value and was the first Middle Eastern company to list a Sukuk on the London Stock Exchange.