Aldar Issues $1 Billion Hybrid Bonds, Boosts Stake in Investment Arm to 90% and Strengthens Capital Flexibility

Abu Dhabi | EcoPulse24

Aldar Group announced the issuance of $1.0 billion in hybrid subordinated bonds through a private placement with Apollo Global Management, aiming to support growth momentum and improve capital structure efficiency at the group level. The total issue value is $1.0 billion, marking one of the region's largest private corporate hybrid bond placements. The bonds have a non-call period of 10.25 years and similar features to Aldar's recent public hybrid issuance. Strategically, the transaction focuses on capital restructuring, with net proceeds injected into Aldar Investment Properties, the income-generating asset management arm. This strengthens the partnership with Apollo, bringing total joint investments to approximately $2.9 billion since 2022. Added capital value included the redemption of $500 million in perpetual hybrid bonds previously subscribed by Apollo, raising Aldar's stake in Aldar Investment Properties to 90%, with Apollo retaining 10%.

This move allows Aldar to benefit more from recurring cash flows of its growing investment portfolio, particularly with development and hold projects valued at around $5 billion. It also enhances the group’s financial flexibility and supports its ability to seize further expansion opportunities in core markets.

On the credit front, Moody’s affirmed Aldar Group’s rating at Baa2 and Aldar Investment Properties at Baa1 with a stable outlook in January, while the newly issued public hybrid bonds were rated Baa3, with 50% of their value counted as equity. Citi acted as sole global coordinator, structuring agent, and rating advisor for the transaction.

Aldar is a leading real estate developer and asset manager in Abu Dhabi, operating through two main arms: Aldar Development and Aldar Investment. The group manages a portfolio of income-generating investment assets valued at over AED 49 billion, spanning retail, residential, commercial, logistics, and hospitality sectors, with an international presence in the UK and Egypt.

About Apollo
Apollo Global Management is a global alternative asset manager focused on delivering returns across a broad risk spectrum, from investment-grade credit to private equity. With an integrated investment platform spanning over three decades, Apollo provides innovative capital solutions to support companies’ growth. Through its retirement services arm, Athene, it also offers savings products and long-term institutional solutions. As of December 31, 2025, Apollo managed approximately $938 billion in assets, making it one of the world’s largest alternative asset managers.

EcoPulse24 Analysis:
This transaction is a carefully considered financial step that strengthens Aldar’s control over its investment arm and increases its share of recurring income, while retaining a global strategic partner with a minority stake. The use of hybrid instruments provides a balance between debt and equity, reflecting a long-term financing approach that supports growth without immediate leverage pressure. The extended partnership with Apollo signals continued institutional confidence in Abu Dhabi’s real estate growth story, especially amid a regional environment with high demand for stable cash flow-generating assets.