Aldar Properties has revealed that it issued $500 million worth of ten-year green bonds, priced at a premium of just 110 basis points over US Treasuries. This was lower than the initially indicated price of 140 basis points over the same bonds set earlier in the day. Despite this, the offering received purchase orders exceeding $1.9 billion as part of a financing program launched by the company worth two billion dollars.
The proceeds from the sale of these green bonds will be used to finance, refinance, and invest in green projects. The company has selected HSBC and Standard Chartered as joint global coordinators for the bond issuance, with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Morgan Stanley acting as lead managers and joint bookrunners.
Mubadala Investment Company owns 25% of Aldar Properties while International Holding Company owns 26%. In mid-May, the real estate development company sold 10-year green bonds worth $500 million to fund a project within its green financing program.