Aldar Properties has issued $1.0 billion in subordinated hybrid notes to Apollo Global Management (Apollo) through a private placement, raising additional capital to support its strong growth momentum.
The transaction strengthens its capital structure, with the notes issued at the the company level and net proceeds injected as equity into Aldar Investment Properties (AIP), which owns income-generating real estate assets.
It also includes the repayment of $500 million in perpetual subordinated notes previously issued by AIP to Apollo as part of the initial $1.4 billion debt and equity investment in 2022. Following the deal, Aldar’s ownership in AIP has increased to 90 percent, with Apollo holding the remaining 10 percent.
Issued to Apollo-managed affiliates, funds, and clients, the transaction marks the region’s largest corporate hybrid private placement and brings Apollo’s total investment in the company to approximately $2.9 billion since 2022. The deal enhances the resilience of both Aldar’s and AIP’s capital structures, supports balance sheet strength, advances growth strategy, and is value accretive for shareholders.
The hybrid notes carry similar terms to the company’s recent $1.0 billion public issuance, with a longer non-call period of 10.25 years.
In early January, Moody’s reaffirmed Aldar’s Baa2 credit rating and AIP’s Baa1 rating, both with a stable outlook, and assigned a Baa3 standalone rating to the publicly issued hybrid notes, with 50 percent equity credit. Citi served as sole global coordinator, structuring agent, and rating advisor on the transaction.
Faisal Falaknaz Group Chief Financial and Sustainability Officer- Aldar
“This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in our 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 the company 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 $5 billion.”
Apollo Partner Jamshid Ehsani commented that, “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.”
