Home Business UAE’s Aldar launches 10-year $500 million green sukuk

UAE’s Aldar launches 10-year $500 million green sukuk

The sukuk was launched at a spread of 150 basis points over US Treasuries

by THE GULF TALK
UAE’s Aldar launches 10-year $500 million green sukuk

The sukuk was launched at a spread of 150 basis points over US Treasuries

Dubai: Aldar Investment Properties, a unit of Abu Dhabi’s largest developer Aldar Properties, launched a $500 million 10-year debut green Islamic bond, or sukuk, on Wednesday, according to a bank document seen by Reuters.

The company held investor calls on Tuesday ahead of a potential issue, the proceeds of which will be used to finance or invest in eligible projects under its Green Framework.

The sukuk was launched at a spread of 150 basis points over US Treasuries, tightening from guidance released earlier in the day of 185 bps over Treasuries, as order books topped $2.2 billion.

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

Earlier this month, a senior Aldar executive said the company would only tap debt markets opportunistically, and was in a comfortable liquidity position, with Dh6.1 billion ($1.66 billion) in free cash and Dh4.4 billion available in undrawn facilities.

There has been a pickup in Islamic debt issuance from Gulf credits recently as borrowers look to tap a broader investor base and meet demand for an under-supplied asset class.

News source: Gulf News

Related Articles

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More