Aldar issues USD 1.0 billion hybrid notes to Apollo to support growth momentum and optimise capital structure

USD 1.0 billion subordinated hybrid notes issued through a private placement by Aldar Properties PJSC
Net proceeds deployed as equity into Aldar Investment Properties (AIP), including the repayment of USD 500 million perpetual hybrid notes issued to Apollo in 2022
Transaction increases Aldar’s ownership to 90% in AIP, providing greater exposure to recurring income streams from a growing portfolio of investment properties
Builds on Apollo’s long-term capital partnership with Aldar, with total transactions totaling USD 2.9 billion to date.

Abu Dhabi, UAE – 20 February 2026: Aldar Properties PJSC (“Aldar”) has issued USD 1.0 billion in subordinated hybrid notes to Apollo Global Management (“Apollo”) through a private placement, raising additional capital to support its strong growth momentum.

The transaction optimises Aldar’s capital structure, with the notes issued at Aldar level and net proceeds injected as equity into Aldar Investment Properties (AIP), which holds income-generating real estate assets. This transaction includes repayment of USD 500 million perpetual subordinated notes issued by AIP to Apollo as part of the initial USD 1.4 billion debt and equity investment by the asset management firm into Aldar in 2022. Following the transaction, Aldar’s ownership in AIP has increased to 90%, with Apollo owning the remaining 10%.

The issuance, conducted to Apollo-managed affiliates, funds and clients, represents the region’s largest corporate hybrid private placement, and brings Apollo’s total investment in Aldar to approximately USD 2.9 billion since 2022. The transaction enhances the resilience of both Aldar’s and AIP’s capital structures, and is intended to support Aldar’s balance sheet strength, as well as its growth agenda, and is value accretive for Aldar shareholders.

Commenting on the transaction, Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: “This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory. The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalize on attractive opportunities across our core markets. Importantly, it elevates Aldar’s share of stable, recurring income generated by AIP’s high quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to USD 5 billion.”

Apollo Partner Jamshid Ehsani said: “Completing our fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors. Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team. This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.”

The hybrid notes issued to Apollo share the characteristics of a recent USD 1.0 billion public issuance by Aldar, with a longer non-call period of 10.25 years. In early January, Moody’s reaffirmed Aldar’s Baa2 credit rating and AIP’s Baa1 credit rating, both with a stable outlook and assigned a standalone credit rating of Baa3 to the publicly issued hybrid notes, with 50% equity credit. Citi acted as sole global coordinator, structuring agent, and rating advisor for Aldar’s latest transaction with Apollo.

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