Aldar Properties Secures $500 Million in Green Bonds for Green Projects at Lower Premium over US Treasuries

Aldar Properties recently issued 10-year green bonds worth $500 million to finance, refinance and invest in green projects. The sukuks were priced at a premium of 110 basis points over US Treasuries, which was lower than the initially indicated price of 140 basis points over the same bonds set earlier in the day. The offering received purchase orders exceeding $1.9 billion as part of a financing program launched by the company worth two billion dollars.

The proceeds from the sale of the green bonds will be used to fund various projects within Aldar Properties’ green financing program. HSBC and Standard Chartered were jointly appointed as global coordinators for the offering, with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Morgan Stanley acting as lead managers and joint bookrunners.

Mubadala Investment Company owns 25% of Aldar Properties while International Holding Company owns 26%. In mid-May, the real estate development company sold 10-year green bonds worth $500 million to fund a project within its green financing program.