Aldar Investment Properties, the real estate unit of Aldar Properties, has raised $500 million through its first green sukuk. The 10-year issuance is part of a $2 billion financing program to support growth and sustainability goals, in line with the UAE Net Zero by 2050 initiative. Aldar aims to be a net-zero carbon business by 2050.

Aldar's recent issuance, carrying a 4.875 percent coupon rate, garnered strong interest from local, regional, and international investors. The deal was oversubscribed four times, with the orderbook exceeding $2.3 billion. By implementing a successful pre-hedging strategy during 2021 and 2022, Aldar achieved a significantly lower effective funding cost. This strategy took advantage of lower long-term interest rates, bringing the effective interest rate down to 3.85 percent, according to the company.