Aldar Properties PJSC, one of the UAE’s top real estate developers, has successfully secured a new loan of $2.45 billion (AED 9 billion). This loan is a sustainability-linked syndicated senior unsecured revolving credit facility (RCF), making it the largest deal of its kind in the Middle East’s real estate market. This achievement is a major step in Aldar’s financial plans.
This new loan comes after Aldar recently issued $1 billion (AED 3.67 billion) in hybrid notes earlier this month. Together, these actions strengthen Aldar’s financial stability and structure. These important steps ensure that Aldar is ready to carry out its big growth plans as the company continues to grow in both development and investment areas.
The new loan is six times bigger than Aldar’s previous largest single-bank loan. It shows Aldar’s strong position in the market. The deal was made with a very low interest rate for Aldar, giving the company more money to use and strengthening its financial health as it grows quickly in both residential and commercial properties.
“This syndicated loan is a big achievement that shows Aldar’s financial strength and our ability to get funding from many high-quality institutions,” said Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar. “It shows that global and regional banks trust our business model and our plans for fast growth. This loan, along with our recent hybrid note issuance, ensures we have the resources to drive our strategies, take advantage of new opportunities, and create lasting value for all our stakeholders.”
The loan attracted a lot of interest, with 15 major financial institutions participating, including some new banks for Aldar. Key contributors included big international and regional banks like Abu Dhabi Commercial Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, HSBC, and J.P. Morgan, among others.
The loan is available in both regular and Islamic formats, in AED and USD, and will last for five years. It has a floating interest rate, which allows Aldar to benefit from good market conditions. This loan gives the company more flexibility in its operations and finances, helping it continue its strong growth plans.
Importantly, the loan is linked to sustainability goals, showing Aldar’s commitment to responsible business practices and environmental, social, and governance (ESG) goals. By including sustainability in its financing, Aldar not only improves its financial position but also stands out as a leader in sustainable growth in the real estate industry.
This deal follows Moody’s reaffirming Aldar’s Baa2 credit rating with a stable outlook in January 2025. With this new loan, Aldar’s total available funds increase to $7.3 billion (AED 26.9 billion), which includes cash on hand and unused committed credit facilities. As of September 30, 2024, the company’s average debt repayment time is 5.2 years, providing a strong base for ongoing growth.
