ADX lists Aldar Investments $500 million sukuk

Abu Dhabi Securities Exchange (ADX) today announced the listing of US dollar denominated sukuk issued by Aldar Investment LLC, a wholly owned subsidiary of Aldar Properties PJSC with a nominal value of US $ 500 million.

The Sukuk was priced at a fixed profit rate of 3.875% for 10 years.

IPOs were more than six times oversubscribed and international investors accounted for 71% of the total sukuk.

Aldar owns and manages a diversified portfolio of high-quality recurring revenue assets of AED 20 billion, ranging from residential, commercial, retail and hotel space.

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The new issue follows the successful launch of Aldar Investment's first US $ 500 million 7-year sukuk in 2018, which was the first listing of corporate sukuk on the Abu Dhabi Securities Exchange. .

This listing is the third of its kind on the Abu Dhabi Securities Exchange (ADX) this year. In October, the market witnessed the listing of the largest medium-term bond program issued by the Emirate of Abu Dhabi with a value of US $ 10 billion in three categories. The first of the Sukuk Sukuk Issic Co., Ltd. worth 600 million dollars.

His Excellency Khalifa Salem Al Mansouri, Acting Chief Executive Officer of Abu Dhabi Securities Exchange, said that this important event represents the high confidence that the market enjoys among the national institutions in the UAE and the efforts of various sectors of the country to improve the performance of the national economy in which financial markets play a pivotal role.

He added that this listing is a new affirmation of the market leadership and its superiority in the stock markets in the region due to the confidence of the market and its readiness to list and trade various financial instruments through its adoption of an advanced settlement and clearing system. Preferred for listing and trading in the region by having a world-class infrastructure to list and trade various securities and gives investors the opportunity to invest their savings in a legal environment that adopts the best international practices in the field of disclosure and transparency and a stable economic and legislative environment Rh.

Talal Al Thiabi, Chief Executive Officer of ALDAR Properties, said that the strong demand from Aldar Sukuk from international investors is a clear indication of the company's strong foundations.

He added that the dual listing of Sukuk in both the Abu Dhabi Securities Exchange and Euronext Dublin would enhance the Sukuk's reach to a wide and diversified base of investors in several markets.

The company will use the proceeds of the issue to refinance existing debt.

The issuance will contribute to an ideal diversification of ALDAR's funding base and an extension of the total average maturity of ALDAR's liabilities.

Aldar Investments holds a Baa1 rating from Moody's, the highest rating given to a non-governmental company in the region. This high rating reflects the company's leading position in the Abu Dhabi market, stable recurring revenue from its diverse high-quality assets, high occupancy rates in its assets, diverse tenant base and strong operating model.

Aldar has appointed Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered as Joint Global Coordinators and Co-Managers, in addition to Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital and Sharjah Islamic Bank as Co-Lead Managers.

With the launch of new innovative products and services, ADX has attracted a wider range of investors and increased market capitalization and trading values ​​to become the region's preferred listing and trading platform.

Source: WAM