Aldar plans bond issue - report

ALDAR PROPERTIES: Set to test the bond market, according to reports. (Getty Images)

Aldar Properties, the UAE real estate developer, is considering a $500 million 5-year bond offering, according to a source.

In a statement to the Abu Dhabi bourse - reported by Bloomberg - the company said it would be ''guaranteeing a potential bond issue,'' which will be offered via a special purpose vehicle.

The source meanwhile said the company may sell the issue as early as this week, according to Bloomberg.

Elsewhere, specialist finance publication IFR said Aldar had issued price guidance for a five-year issue of 9 percent, with no guidance on size.

Last week Moody's assigned a stable outlook to the company - no major surprise given it has so far avoided customer defaults on its projects.

The company, which has a market capitalisation of approximately $2.7 billion, has $72 billion worth of projects in the pipeline, the rating agency said in its report.

Martin Kohlhase, AVP-analyst at Moody's, said at the time: "Although demand in the Middle East for real estate has materially softened since the fourth quarter of 2008...the government of Abu Dhabi has awarded a significant number of new projects to Aldar, which amounts to some 85 percent of work to be commenced during 2009.

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