Aldar to launch $1.25bn bond to generate funds

Abu Dhabi's Aldar Properties will bring a $1.25bn, five-year bond to market with a coupon of 8.75 percent, the company said on Thursday.

Specialist finance publication IFR had reported Abu Dhabi's largest real estate developer had issued price guidance at nine percent and markets had expected a $500m issue.

"It's part of our funding strategy for corporate purposes and our development work," Aldar finance director Shafqat Malik said.

The bond will be issued through a guaranteed special purpose vehicle to be listed on the London Stock Exchange.

The Abu Dhabi government and a raft of state-linked firms have already issued bonds this year as they look to boost financial resources to meet an aggressive infrastructure programme and become more transparent for investors.

Ratings agency Standard & Poor's has assigned the Aldar bond, which would be issued by an SPV called Atlantic Finance Ltd, an A- rating, while Moody's rated the notes A3.

Aldar stands in contrast to Dubai's government-owned Nakheel, which has been battered by the property market crash and is examining options to repay its $3.5 billion sukuk issue due in December.

Aldar, according to Moody's, has a low default rate and benefits from a large number of Abu Dhabi government contracts. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM