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The UAE’s Aldar Properties has raised US$750mn by issuing a five-year sukuk, its first capital markets transaction since its merger with Sorouh Real Estate in 2013
According to The National, Aldar’s latest five-year sukuk issue was oversubscribed by three and half times as there was considerable interest from investors in Asia, the Middle and Europe.
The builder said proceeds from this issuance will be used to refinance some of its US$3.08bn of debts maturing in 2014. This issue is part of Aldar’s new debt strategy to reduce the developer’s borrowing costs and to extend its maturity profile in the market.
Earlier this year, Aldar secured a US$1.09bn 3.5-year term loan from a bank. Its assets, after it merged with Sorouh, stand at US$13bn.
Some of Aldar's renowned projects in the UAE include Dubai World Trade Centre, Shams Abu Dhabi, Motor World and Lulu Island.
The company’s credit profile has improved in the market since 2013 with Moody’s upgrading it three notches to Ba1 from B1 citing a “positive outlook” for the developer.
Aldar chief financial officer Greg Fewer said, “Aldar’s credit fundamentals are very strong. This transaction fits in well with our financing strategy as it reduces our cost of capital and expands the breadth and depth of our investor base.”