Aldar Investment Properties LLC issues US$500 million Subordinated Perpetual Notes to Apollo Global Management priced at a coupon of 5.625%
- The subordinated perpetual notes are part of Apollo’s US$1.4 billion strategic investment into Aldar’s transformational growth initiatives announced in February 2022
- The notes represent the largest corporate hybrid private placement in the Middle East and North Africa region, with the longest non-call period of 15 years
Abu Dhabi, UAE – 24 March 2022: Aldar Investment Properties (“AIP”), a subsidiary of Aldar Properties, has issued US$500 million subordinated perpetual notes to Apollo Global Management (“Apollo”) priced at a coupon of 5.625% for an initial non-call period of 15 years.
The subordinated perpetual notes are part of Apollo’s US$1.4 billion investment of strategic capital into Aldar’s transformational growth initiatives, which was announced in February 2022. The commitment also includes a US$500 million investment into a land joint venture, as well as US$400 million in common equity and mandatory convertible preferred equity in AIP.
The subordinated perpetual notes have been assigned a Baa3 rating by Moody’s Investors Service, which has also reaffirmed AIP’s Baa1 rating, the highest credit rating for a non-government corporate in the region. The two-notch differential is consistent with the rating agency’s normal treatment of hybrids for investment grade companies.
Greg Fewer, Chief Financial and Sustainability Officer at Aldar Properties, commented: “The terms of this ground-breaking issuance reflect the unique strength of Aldar's best in class investment property platform. Our long-term strategic partnership with Apollo will accelerate Aldar’s transformative growth agenda, allowing us to build significant scale and enhance diversification of our high-quality portfolio of income-generating assets.”
The perpetual subordinated notes are the first to be issued by Aldar and the largest corporate hybrid private placement in the Middle East and North Africa (MENA) region, with the longest non-call period.