Aldar Properties has tapped global debt markets with a $1 billion hybrid bond sale, riding a wave of investor appetite that allowed the Abu Dhabi developer to tighten pricing well below early expectations.
The US dollar–denominated notes were priced at a coupon of 5.875%, trimmed sharply from initial guidance that hovered in the mid-6% range. The deal was re-offered at 99.574, translating into a yield of about 5.95%.
Demand was anything but modest. Order books climbed to roughly $3 billion at their peak before settling at $2.9 billion, underscoring strong confidence in the issuer and the structure of the transaction.
The hybrid notes are unsecured and subordinated, sitting just above equity and deeply subordinated instruments in Aldar’s capital stack. Such instruments are typically designed to bolster balance sheets while offering investors higher returns than conventional senior debt.
The securities are slated for listing on Euronext Dublin’s Global Exchange Market, with a subsequent listing planned on the Abu Dhabi Securities Exchange.
For Aldar, the transaction marks a confident return to the hybrid market—priced tighter, backed by deep demand, and timed to capture investor hunger for yield tied to regional real estate champions.
