The financing came from a group of 15 UAE-based and international banks.
Aldar Properties, the largest listed real estate developer in Abu Dhabi, has secured Dh9 billion ($2.45 billion) through a sustainability-linked revolving credit facility. This loan was provided by a group of 15 banks from the UAE and other countries.
The five-year loan increases Aldar’s available funds to almost Dh27 billion. It includes both regular and Islamic loan parts in UAE dirhams and US dollars, according to a stock market filing on Monday.
This loan has different parts with a floating interest rate, which means the rate can change based on market conditions. It is also linked to sustainability goals, which are specific targets Aldar aims to achieve.
This loan comes after Aldar recently issued Dh3.67 billion in hybrid notes earlier this month. These notes were very popular and were subscribed 3.8 times over, with total orders from global investors exceeding $4.9 billion.
Faisal Falaknaz, Aldar’s Group Chief Financial and Sustainability Officer, said, “This latest loan shows Aldar’s strong financial position and our ability to attract funding from many high-quality investors.” He added, “Together with our recent hybrid notes, this loan helps us stay ready to pursue our strategic plans and take advantage of new opportunities.”
The new loan supports Aldar’s goal to reach net zero carbon emissions by 2050. Aldar is working on several projects to achieve this, such as updating buildings, using low-carbon designs, and incorporating green concrete and green steel in construction.
Aldar’s Green Finance Framework guides its investments in sustainable projects. These projects include building green buildings, upgrading properties to save energy, managing water sustainably, controlling pollution, and using renewable energy sources.
In addition to this loan, Aldar raised $500 million through its first green Islamic bond in 2023 as part of its efforts to support sustainability.
The global green finance market is expected to grow significantly, reaching $28.71 trillion by 2033, up from $4.18 trillion in 2023, according to a report by Spherical Insights.
In the Gulf region, creating the right systems and methods for green finance can help the area achieve “$2 trillion in economic growth and more than a million jobs by 2030,” according to Strategy& estimates.
Aldar’s latest loan attracted investments from several new banks. The participating banks include Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, JP Morgan, Mashreq, National Bank of Kuwait, National Bank of Ras Al Khaimah, and Sharjah Islamic Bank.
Additionally, Moody’s recently confirmed Aldar’s Baa2 credit rating with a stable outlook this month, highlighting the company’s reliable financial standing.
