In a fresh show of financial muscle, Aldar Properties has secured $1 billion through a privately placed hybrid notes issuance to Apollo Global Management—deepening a capital partnership that has steadily grown over the past few years.
The subordinated hybrid notes, structured with a non-call period of just over a decade, give Aldar long-dated flexibility while preserving balance sheet strength. Moody’s has assigned the instrument a Baa3 rating and granted it 50% equity credit, reinforcing its hybrid nature—part debt, part equity in spirit.
The proceeds are not sitting idle. They have been channelled as equity into Aldar Investment Properties (AIP), the group’s income-producing real estate arm. Part of the transaction also refinances $500 million in perpetual subordinated notes that AIP had issued to Apollo in 2022, when the asset manager first anchored a $1.4 billion debt-and-equity infusion into the Abu Dhabi-based developer.
With the refinancing complete, Aldar’s stake in AIP has climbed to 90%, tightening its grip on a portfolio built around recurring rental income. Apollo retains the remaining 10%.
This latest move lifts Apollo’s cumulative investment in Aldar to roughly $2.9 billion since 2022, underscoring the scale and durability of the relationship.
Inside Aldar, the strategy is clear: build, hold, and compound. The company is eyeing a develop-to-hold pipeline valued at close to $5 billion, alongside selective acquisitions aimed at expanding its recurring revenue base.
Citi served as sole global coordinator and structuring agent on the deal.
For Aldar, the message is unmistakable—growth will be funded with precision, and long-term capital partners remain central to the playbook.
