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Wed 16 Oct 2019 02:20 PM

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Aldar investment unit sees strong demand for $500m sukuk

Aldar Investment Properties announced on Wednesday the successful placement of a fixed rate $500 million dollar-denominated sukuk

Aldar investment unit sees strong demand for $500m sukuk
Talal Al Dhiyebi, CEO of Aldar.

Aldar Investment Properties, a subsidiary of Aldar Properties, announced on Wednesday the successful placement of a fixed rate $500 million dollar-denominated sukuk.

The 10-year sukuk carries a coupon rate of 3.875 percent, the lowest rate ever achieved by Aldar, following strong investor demand.

A statement said the transaction was over six times oversubscribed, with global investors accounting for 71 percent of the total transaction allocation.

The net proceeds of the offering will be used to refinance existing debt, it added.

Aldar unveils 10% discount on many Abu Dhabi residential projects

Customers taking advantage of the offers will benefit from a 10% discount on unit prices and a 2% waiver on registration fees

Aldar Investments owns and manages a AED20 billion portfolio of high-quality income-generating residential, retail, commercial and hospitality assets.

Talal Al Dhiyebi, CEO of Aldar said: “The success of the transaction represents a strong endorsement by the global investment community of the Abu Dhabi economy and of Aldar’s leading position in the regional real estate sector.

"This landmark deal further strengthens our balance sheet, and is testament to Aldar Investments’ status as one of the most efficient platforms for property ownership in the region.”

Aldar Investments mandated Dubai Islamic Bank, First Abu Dhabi Bank, HSBC and Standard Chartered Bank as joint global coordinators and joint lead managers, along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital and Sharjah Islamic Bank as joint lead managers.

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