Apollo invests USD 500 mn in Aldar: State-owned Aldar Properties issued USD 500 mn in subordinated hybrid notes to US-based Apollo Global Management, marking one of the region’s largest corporate hybrid private placements, according to a press release (pdf).

The details: The hybrid notes carry a non-call period of 10.25 years and share characteristics with Aldar’s recent USD 1 bn public issuance, the company said. Moody’s expects to rate the notes Baa3 with 50% equity credit, one notch below Aldar’s Baa2 rating, with a stable outlook.

Apollo has been an investor in Aldar for a while: The notes replace a previous land joint venture (JV) that was part of Apollo’s initial USD 1.4 bn investment in Aldar in 2022. This investment also included a USD 400 mn acquisition in August 2022 for an 11.1% minority stake in Aldar Investment Properties.

Aldar has been busy: Last month, Aldar Properties issued USD 1 bn Reg S hybrid capital notes — the largest conventional hybrid issuance in the Middle East — and closed an AED 9 bn sustainability-linked revolving credit facility last month — the largest syndicated loan of its kind secured by a real estate firm in the region. Over the past two years, it also sold about USD 1 bn in green sukuk.

ADVISORS- Citi acted as Aldar’s structuring and rating advisor.

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