Aldar Completes Successful Refinancing with New 7 Year US $500m Sukuk

Aldar Investments' debut US$500m 7 year sukuk competitively prices at 4.75%More than twice over-subscribed across Europe, Middle East and AsiaProceeds to be used to refinance existing debt.

Abu Dhabi, UAE, 25 September 2018: Aldar Properties PJSC ("Aldar"), today announces that its 100% owned subsidiary Aldar Investments has successfully issued its debut fixed rate US dollar denominated sukuk, with a tenor of 7 years, raising a total of US$500 million.

Aldar Investments is the region's largest diversified real estate investment company, and its highest rated non-government related corporate.  The new issuance demonstrates Aldar Investments' ability to raise efficient long-term debt capital independently; and also successfully refinances Aldar's forthcoming debt maturities. The new sukuk, the first to be issued by an Abu Dhabi corporate entity since 2013, benefited from strong regional Islamic demand as well as international institutional interest which enabled the issue to be more than twice oversubscribed.

The new sukuk was extremely competitively priced, with a profit rate of 4.75%, underpinned by Aldar Investments' Baa1 credit rating. This debut sukuk from Aldar Investments progresses its funding strategy by positively positioning Aldar Investments within the international investor community as an independent borrower. Combined with the group's bank facilities, the debut sukuk extends overall debt maturity beyond 5 years at an average interest rate of 3.9%, demonstrating the strength and resilience of Aldar's balance sheet. The proceeds of the sukuk issuance will be used to refinance existing Aldar debt. Greg Fewer, Chief Financial Officer commented:

"This successful sukuk issuance is a strong result for Aldar and validates the rationale for establishing Aldar Investments. We want Aldar Investments to be the most cost-effective platform for real estate ownership in the region and this transaction moves us significantly towards that goal."