Aldar Investment Properties raised USD 290 mn through fresh taps of its green sukuk due 2034 and 2035, it said in a statement (pdf). The two tranches drew USD 830 mn in orders, making them 2.8x oversubscribed, with a 52% allocation to regional investors and 48% to international investors. The sukuk was structured as a senior unsecured Reg S Wakala/Murabaha.

A record spread: The taps priced at 87 bps over US Treasuries, which the issuer claims is the tightest spread yet for a Middle East real estate issuer. The 2034 notes had a yield of 4.89%, while the 2035 notes boast a 4.95% yield. This was tightened from initial price thoughts of 103.375% for the 2034 notes and 101.250% for the 2035 paper.

Where the funds will go: Proceeds will be deployed under its green finance framework, which includes refinancing certified sustainable assets.

Aldar says it now has close to AED 30 bn in liquidity, giving it “a buffer against market swings” and firepower for expansion. The new raise adds to a string of funding this year, including its USD 500 mn green sukuk in March and a record AED 9 bn sustainability-linked revolving credit facility in January.

ADVISORS- Aldar appointed First Abu Dhabi Bank (FAB) and Standard Chartered Bank as joint green structurers, with Abu Dhabi Islamic Bank, Emirates NBD Capital, FAB, JP Morgan and Standard Chartered Bank acting as joint leads and bookrunners.

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