Aldar Properties raised USD 1 bn via a 10.25-year subordinated hybrid issuance to Apollo Global Management in a private offering, it said in a bourse filing (pdf). The move marks the region’s largest corporate hybrid private placement and brings Apollo’s total exposure to Aldar since 2022 to USD 2.9 bn.

A capital reshuffle is also at play: Aldar, rated Baa2 by Moody’s, is using the proceeds to buy back USD 500 mn in older perpetual notes held by Apollo in Aldar’s investment arm, Aldar Investment Properties (AIP), from 2022. The funds will also funnel fresh equity into AIP, which carries a Baa1 rating, raising Aldar’s ownership in the subsidiary to 90% — up from 88.1% as of early 2025 — and leaving Apollo with a 10% residual stake.

Capturing the upside: AIP holds Aldar’s develop-to-hold portfolio, which includes assets like Yas Mall and the ADGM towers that generate steady rent. By increasing its stake, Aldar ensures more of that liquidity stays at the parent level, giving it the financial firepower to bankroll its project pipeline, which includes its share of the AED 38 bn Dubai Holding expansion announced earlier this month and its recent AED 23 bn Abu Dhabi land grab.

ICYMI- Aldar closed another USD 1 bn hybrid issuance last month, pricing 30.25-year subordinated notes at a 5.875% coupon after books peaked at USD 4.2 bn. The offering — rated Baa3 by Moody’s and treated as 50% equity — marked one of the tightest corporate hybrid spreads in the region and follows a broader USD 5.1 bn funding haul in 2025.

ADVISORS- Citi quarterbacked the transaction as global coordinator, structuring agent, and rating advisor.

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