Aldar prepares for new 10-year green Islamic bonds

Alamy via Reuters

Aldar Properties, the largest developer in Abu Dhabi, has appointed banks for its US-dollar-denominated 10-year green Islamic bond, according to a news report.

HSBC and Standard Chartered Bank will lead as joint global coordinators, Reuters reported, citing a bank document.

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Morgan Stanley are joint lead managers and bookrunners, the report said.

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The unsecured benchmark sukuk  – sharia-compliant bonds – will be part of the $2 billion loan programme of Aldar Investment Properties, a subsidiary of the Abu Dhabi-listed developer.

The proceeds will be used to finance, refinance and invest in certain green projects, the report said.

A benchmark-size offering means at least $500 million.

The developer’s 10-year green debut Islamic bond was more than four times oversubscribed by regional and international investors, Faisal Falaknaz, Aldar’s acting chief finance and sustainability officer, told AGBI last May. 

Islamic finance assets grew to about $3.3 trillion worldwide last year, but credit ratings agency S&P has warned that a planned industry standard could drive down sukuk issuance in 2025 and beyond. 

The agency expects the release of sukuk to hover between $160 billion and $170 billion this year after a strong start to 2024.