Aldar Properties Raises $500 Million in Green Bonds for Sustainable Projects, Attracting Investor Interest Amid Growing Demand for Eco-Friendly Finance

Aldar Properties issued ten-year green bonds worth $500 million to fund a project within its green financing program. The proceeds from the sale of these bonds will be used to finance, refinance, and invest in green projects. The company selected HSBC and Standard Chartered as joint global coordinators, 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.

The offering received purchase orders exceeding $1.90 billion as part of a financing program launched by the company worth two billion dollars. The bank document revealed that 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. This indicates that investors were willing to pay a lower price for these green bonds compared to conventional bonds due to their environmentally friendly nature.

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. This move shows that Aldar Properties is committed to investing in sustainable projects and reducing its carbon footprint.