Are you in search of sustainable real estate to invest in? Aldar Properties has just announced an exciting opportunity has been recently announced by Aldar Properties. It is Abu Dhabi’s largest real estate developer. A  $500 million 10-year green sukuk has started selling by them. 

This move aligns with the growing interest in sustainable investments. This offering might interest you if you want to invest in real estate while supporting green projects.

Aldar Properties Starts Selling 10-Year Green Sukuk, Document Says

What is Green Sukuk?

Green sukuk is a type of Islamic bond designed to raise funds for projects that benefit the environment. These projects might include renewable energy, sustainable construction, or water conservation. Investors can feel good knowing their money goes towards improving the planet.

Aldar’s Green Sukuk Launch

Aldar launched the green sukuk at a rate of 110 basis points over U.S. Treasuries. This rate is competitive and reflects a high level of interest from investors. The initial rate was set at 140 basis points over U.S. Treasuries earlier in the day, but it narrowed to the lower rate due to strong demand.

High Demand from Investors

The green sukuk offering attracted over $1.90 billion in orders, showcasing high demand from investors. This interest indicates that many people want to be a part of Aldar’s sustainable initiatives. The sale is part of Aldar Investment Properties‘ $2 billion trust certificates program.

How Aldar Plans to Use the Funds

Aldar plans to use the funds from the green sukuk to finance, refinance, and invest in green projects. These projects include sustainable building and other environmental causes. By funding these projects, Aldar demonstrates its commitment to sustainability.

Joint Global Coordinators and Lead Managers

Aldar has partnered with major banks for this offering. HSBC and Standard Chartered Bank are acting as joint global coordinators. In addition, ADCB, ADIB, Dubai Islamic Bank, Emirates NBD Capital, FAB, Mashreq, and Morgan Stanley are involved as joint lead managers and joint book-runners.

Aldar’s Ownership Structure

Aldar is partly owned by sovereign wealth fund Mubadala (25%) and the International Holding Company (26%). The latter is part of a business empire overseen by Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s national security adviser and brother of the president.

This solid ownership structure brings stability and credibility to Aldar’s operations.

Aldar’s Previous Green Sukuk Sale

This is not Aldar’s first foray into green sukuk. Last May, the company sold $500 million in 10-year green sukuk. The funds from that sale went towards projects under Aldar’s green finance framework. This previous success suggests the company is on the right track with its sustainable initiatives.

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Green Projects Funded by Aldar

Let’s look at some of the green projects that Aldar has been involved in. This will give you a better idea of how the funds from the green sukuk will be used.

Sustainable Buildings

Aldar has been involved in developing sustainable buildings. This includes projects that use energy-efficient designs and materials. The company aims to create properties with a lower environmental impact.

The developer has applied sustainable practices in various aspects of construction, such as using recycled materials, optimizing building design to reduce energy consumption, and incorporating solar panels for renewable energy.

In addition, these buildings often integrate smart technologies for better efficiency, like automated lighting and climate control systems. This focus on sustainability aligns with global trends in green building and can make these properties more attractive to potential buyers and tenants.

Renewable Energy

Another area of focus for Aldar is renewable energy. This includes solar and wind power projects. By investing in renewable energy, Aldar is helping to reduce reliance on fossil fuels and lower carbon emissions.

The company’s renewable energy projects range from installing solar panels on its properties to supporting large-scale solar and wind farms in the region. These projects not only provide clean energy but also help reduce the carbon footprint of Aldar’s developments.

By prioritizing renewable energy sources, Aldar positions itself as a leader in the green energy transition, contributing to the UAE’s broader goals of environmental sustainability.

Water Conservation

Aldar is also involved in projects that aim to conserve water. This is especially important in the desert climate of the UAE. By managing water resources carefully, the company is working to protect the environment and ensure water is available for future generations.

The company adopts water-saving technologies in its development, such as efficient irrigation systems and low-flow fixtures in buildings. Aldar also invests in recycling water for non-potable uses, such as landscape irrigation.

By implementing these practices, Aldar helps preserve water resources and promotes responsible water use, which is crucial in arid regions.

Investing in Green Sukuk

If you are considering investing in Aldar’s green sukuk, there are several factors to keep in mind. This is an opportunity to invest in real estate while supporting sustainable projects. Additionally, Aldar’s strong reputation and ownership structure provide stability.

Benefits of Investing in Green Sukuk

There are several benefits to investing in green sukuk.

Supporting Sustainability

By investing in green sukuk, you are supporting projects that benefit the environment. This can include renewable energy, sustainable buildings, and water conservation.

Your investment helps finance projects that contribute to the well-being of the planet and the community. By being part of these initiatives, you can have a positive impact and support a more sustainable future.

Stable Returns

Aldar is a reputable company with a strong track record. Investing in their green sukuk can provide stable returns over the 10 years.

These returns come from the company’s earnings on the underlying green projects and its overall financial performance. Aldar’s reliable management and strategic focus on sustainability enhance its potential for stable returns, making this investment a safe option for those seeking dependable income.

Diversification

Adding green sukuk to your investment portfolio can provide diversification. This can help manage risk and potentially lead to better long-term returns.

Green sukuk offers exposure to a different asset class than traditional investments. It combines real estate and sustainable finance, which can reduce overall portfolio risk. This diversification can help balance your investment strategy and increase your chances of achieving long-term financial goals.

Aldar’s Commitment to Sustainability

Aldar’s green sukuk offerings are a clear sign of the company’s commitment to sustainability. By focusing on green projects, they are helping to create a better future for the UAE and beyond. This commitment aligns with the goals of many investors who want to support environmentally friendly initiatives.

Aldar’s dedication to sustainability goes beyond financial investments. The company participates in community outreach and education initiatives to raise awareness about environmental issues. 

It works closely with local authorities and international partners to ensure its projects align with global sustainability standards.

A Look at the UAE’s Sustainability Goals

Aldar’s focus on green sukuk aligns with the broader sustainability goals of the United Arab Emirates. The country has set ambitious targets for reducing carbon emissions and promoting clean energy.

National Green Agenda

The UAE’s National Green Agenda outlines a series of initiatives aimed at sustainable development. This includes reducing carbon emissions, increasing renewable energy capacity, and promoting efficient use of resources.

Aldar’s projects directly contribute to these goals. By investing in renewable energy and water conservation, Aldar supports the UAE’s push for a more sustainable future. This alignment with national objectives further enhances the appeal of Aldar’s green sukuk offerings.

Renewable Energy Targets

The UAE aims to increase its share of renewable energy in its total energy mix. This includes large-scale solar and wind projects and smaller distributed energy solutions.

Aldar’s investments in renewable energy help the country move closer to these targets. As one of the region’s leading real estate developers, Aldar plays a vital role in advancing the UAE’s renewable energy goals.

International Partnerships

The UAE has partnered with international organizations to promote sustainability. This includes collaborations with the United Nations and other global entities focused on environmental protection.

Aldar’s green initiatives align with these international partnerships. By supporting projects that meet global sustainability standards, Aldar contributes to the UAE’s role as a leader in the global sustainability movement.

Conclusion

Aldar Properties’ launch of the $500 million 10-year green sukuk presents a great opportunity for investors who want to combine real estate investment with sustainability. The company’s commitment to green projects and its strong reputation make this an appealing option.

If you are interested in supporting sustainable development while potentially earning stable returns, this green sukuk offering may be worth considering.

Aldar’s focus on sustainable projects and its partnership with reputable banks and financial institutions add credibility to the green sukuk offering. Investing in this opportunity aligns with global trends toward green finance and supports the UAE’s national goals for a more sustainable future.