Aldar Issues US$1.0 Billion Hybrid Notes to Apollo

Abu Dhabi, UAE: Aldar Properties has issued US$1.0 billion in subordinated hybrid notes to Apollo Global Management through a private placement, reinforcing its capital base to support continued growth across its core markets.

The transaction optimises Aldar’s capital structure, with the hybrid notes issued at the parent company level and net proceeds injected as equity into Aldar Investment Properties (AIP), the platform holding Aldar’s income-generating real estate assets. The move includes the repayment of US$500 million in perpetual subordinated notes previously issued by AIP to Apollo as part of the US$1.4 billion debt and equity investment completed in 2022.

Following the transaction, Aldar’s ownership in AIP has increased to 90%, with Apollo retaining the remaining 10%. The issuance, conducted to Apollo-managed affiliates, funds and clients, represents the largest corporate hybrid private placement in the region and brings Apollo’s cumulative investment in Aldar to approximately US$2.9 billion since 2022.

The hybrid structure is designed to enhance balance sheet resilience at both Aldar and AIP levels, supporting long-term financial flexibility while strengthening recurring income exposure. The transaction is also intended to be value accretive for Aldar shareholders.

Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said:

This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory. The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalize on attractive opportunities across our core markets. Importantly, it elevates Aldar’s share of stable, recurring income generated by AIP’s high quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to US$5 billion.

Apollo Partner Jamshid Ehsani added:

Completing our fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors. Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team. This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.

The newly issued hybrid notes share similar characteristics to Aldar’s recent US$1.0 billion public hybrid issuance, although with a longer non-call period of 10.25 years. In January, Moody’s reaffirmed Aldar’s Baa2 credit rating and AIP’s Baa1 credit rating, both with stable outlooks, and assigned a standalone Baa3 rating to the publicly issued hybrid notes, with 50% equity credit.

Citi acted as sole global coordinator, structuring agent and rating advisor for the latest transaction with Apollo.

The issuance further consolidates Aldar’s position as one of the region’s most active capital markets participants, aligning long-term funding strategy with expansion plans across its development and income-generating platforms.