Abu Dhabi-based Aldar’s unit to issue USD-denominated sukuk

Abu Dhabi-based Aldar’s unit to issue USD-denominated sukuk
Abu Dhabi: Aldar Investment Properties LLC, a 100% owned subsidiary of Aldar Properties, is planning to issue a five- to ten-year fixed rate US dollar denominated sukuk.
The investment unit will begin the roadshow and meetings to issue “the New Aldar Investments Sukuk” in the Middle East, Europe and Asia as of 18 September 2018, Aldar Properties said in a filing to the Abu Dhabi Securities Exchange (ADX) on Monday.

“The outcome of the issue is subject to market conditions and further announcements regarding the sukuk will follow in due course”, according to the filing.

Aldar also made a tender offer to repay its existing $750 million sukuk which matures on 3 December 2018 as part of the company’s pro-active liability management strategy to optimise its debt profile and aggregate costs of funding.

First Abu Dhabi Bank, JP Morgan Securities, and Standard Chartered Bank will be the managers of the debt note, the ADX-listed firm indicated.

Last week, Aldar Properties unveiled it created the region’s largest diversified real estate investment company with over AED 20 billion ($5.4 billion) in assets.

The new investment unit, Aldar Investment, aims to manage greater operational and capital efficiencies to unlock value for shareholders and create the foundation for a new phase of accelerated growth

Aldar Investments has been rated by Moody’s at BAA1, one notch above Aldar, which will enable it to access capital on more favourable terms independently of Aldar and allow it to issue a new sukuk in the near future.

Source: Mubasher

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