Abu Dhabi: Aldar Properties has successfully secured an AED9 billion (US$2.45 billion) sustainability-linked syndicated senior unsecured committed multi-tranche revolving credit facility (RCF). The facility marks the largest sustainability-linked, syndicated deal by a real estate company in the Middle East.
According to Emirates News Agency, this transaction follows Aldar's recent AED3.67 billion ($1 billion) hybrid notes issuance completed earlier this month. Both transactions collectively bolster Aldar's capital structure, financial flexibility, and resilience, positioning the company to execute its growth initiatives under its ambitious strategy. The facility is noteworthy for being six times larger than any prior single bank financing undertaken by the company, arranged at a credit spread that underscores Aldar's balance sheet resilience amid rapid growth across its property development and investment platforms.
Faisal Falaknaz, Aldar's Group Chief Financial and Sustainability Officer, highlighted the significance of the facility as a testament to Aldar's financial strength and the trust instilled by global and regional banks in its growth trajectory. "This facility, alongside our recent hybrid issuance, ensures we are poised to drive strategic initiatives, seize emerging opportunities, and create sustainable value for our stakeholders," Falaknaz stated.
The syndication attracted orders from 15 major international and regional financial institutions, including several new additions to Aldar's credit panel. Participating banks comprise Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank (P.J.S.C.), Emirates NBD Bank (P.J.S.C.), First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, J.P. Morgan, Mashreq, National Bank of Kuwait, National Bank of Ras Al Khaimah, and Sharjah Islamic Bank.
The five-year facility incorporates both conventional and Islamic tranches in AED and USD currencies. It is committed and revolving, linked to a floating rate to leverage favorable market conditions. The facility enhances Aldar's operational and financial flexibility, providing additional resources to support its growth objectives. Importantly, it is linked to sustainability-linked KPIs, underscoring Aldar's commitment to measurable ESG targets and responsible business practices.