Aldar issues $1B hybrid notes to Apollo
TL;DR
Aldar Properties issued $1 billion in hybrid notes to Apollo, boosting its balance sheet and funding growth initiatives like land acquisition and portfolio expansion. This marks Apollo's fifth investment in Aldar, totaling $2.9 billion, and is one of the largest corporate hybrid placements in the region.
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Aldar issues $1B hybrid notes to Apollo
Aldar Issues $1 Billion Hybrid Notes to Apollo to Strengthen Balance Sheet and Fuel Growth
Abu Dhabi-based real estate developer Aldar Properties PJSC has issued $1 billion in subordinated hybrid notes to Apollo-managed funds, marking the fifth investment by the global alternative asset manager in the company since 2022. The transaction, valued at $1 billion, brings Apollo's total commitments to Aldar to approximately $2.9 billion. Proceeds from the issuance will be deployed as equity into Aldar Investment Properties (AIP), increasing Aldar's ownership stake in the platform to 90%.
The hybrid capital structure is designed to enhance Aldar's balance sheet flexibility while supporting its growth strategy. The company plans to use the funds for landbank replenishment, expanding its develop-to-hold portfolio, and pursuing strategic acquisitions. Faisal Falaknaz, Aldar's Group Chief Financial and Sustainability Officer, emphasized that the transaction "enhances balance sheet resilience" and provides access to "long-term, flexible capital" to capitalize on opportunities in core markets.
Apollo's investment underscores its strategic partnership with Aldar, with the transaction labeled as the largest corporate hybrid private placement in the region and one of the largest foreign direct investments in Abu Dhabi's private sector. Jamshid Ehsani, Apollo Partner, noted that the deal reflects the firm's ability to structure "flexible capital solutions" tailored to corporate needs, while highlighting Aldar's "robust performance" under its management team.
The hybrid notes issuance aligns with Aldar's broader capital structure optimization efforts. The company's develop-to-hold pipeline is now valued at nearly $5 billion, with AIP's diversified portfolio generating stable, recurring income. Apollo's High Grade Capital Solutions division, which has previously partnered with firms like BP, Sony, and Air France, continues to expand its role as a provider of long-dated capital solutions.
This transaction reinforces confidence in Aldar's growth trajectory and Abu Dhabi's real estate market, as institutional investors back the developer's strategy to expand its presence across the UAE and beyond.
