The early-year debt rush continues, this time with a hybrid issuance from Aldar Properties and a seven-year bond for Dubai Aerospace Enterprise (DAE).

Aldar raises USD 1 bn

Abu Dhabi real estate giant Aldar priced a USD 1 bn hybrid note issuance, effectively replicating a similar issuance from January 2025 to keep its aggressive growth plans funded, according to a press release (pdf). The issuance was oversubscribed, with the orderbook reaching USD 4.2 bn, driven largely by demand from the Middle East (31%), as well as Europe and the UK (35%).

The details: The 30.25-year rule 144 A and Reg S-compliant notes — which are non-callable for the first 7.25 years — carry an initial yield of 5.95%.

Why it matters: The issuance brings Aldar’s total raised funding over the past year to USD 6.1 bn. By using the hybrid structure — which Moody’s treats as 50% equity and 50% debt — Aldar is raising dry powder for “landbank replenishment, expansion of its develop-to-hold portfolio, strategic acquisitions, [and] optimizing the debt profile to enhance the overall credit profile” — without weighing down its senior debt capacity or diluting current equity holders.

ADVISORS- Citi quarterbacked the transaction as sole structuring advisor, global coordinator, and joint bookrunner. It was joined by our friends at Mashreq, alongside Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, IMI-Intesa Sanpaolo, JPMorgan, Société Générale, Standard Chartered, and Rakbank as joint lead managers and bookrunners.

DAE’s USD 600 mn bond sees strong demand

Dubai Aerospace Enterprise (DAE) raised USD 600 mn from a seven-year bond, Zawya reports. The Investment Corporation of Dubai-owned lessor saw its orderbook 3.3x oversubscribed, with investors putting in over USD 2 bn in bids.

The strong demand allowed the company to tighten pricing, knocking 25 basis points off its initial guidance to land at a spread of 120 bps over US Treasuries. The bonds carry a 4.95% coupon and a 5.137% yield, and will be listed on Nasdaq Dubai. The issuance is expected to be rated Baa2 by Moody’s and BBB by Fitch, in line with the group’s credit profile.

The issuance comes hot on the heels of its USD 650 mn sukuk in October. That five-year issuance was priced cheaper (4.5%), but the strong appetite for this longer-dated paper suggests investors aren’t shying away from regional aviation names despite geopolitical tensions. The aviation services firm also secured a USD 300 mn three-year unsecured loan from Bank of China in June of last year, as it offloaded 75 aircraft, and spent roughly USD 1 bn acquiring 17 planes. DAE also committed to buying 100 new aircraft from Airbus, Boeing, and ATR.

ADVISORS- Abu Dhabi Commercial Bank, Bank of China, BNP Paribas, Goldman Sachs International, and Mizuho were mandated as joint active bookrunners, alongside Bank ABC, Crédit Agricole CIB, Emirates NBD Capital, Fifth Third Securities, First Abu Dhabi Bank, HSBC, JPMorgan, Morgan Stanley, Natixis, and Truist as joint passive bookrunners, and Rakbank as co-manager.

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