Aldar Investment Properties has successfully raised $500 million through its inaugural issuance of a green sukuk.
Aldar Investment Properties, the real estate management arm of Aldar Properties, the largest listed developer in the Emirate of Abu Dhabi, has successfully raised $500 million through its debut green sukuk issuance. The funds raised will enable the company to acquire additional assets and support its sustainability objectives.
The ten-year Sharia-compliant issuance is a crucial component of Aldar Investment Properties’ $2 billion financing program, designed to bolster its growth agenda while aligning with the UAE’s strategic initiative of achieving Net Zero by 2050. Aldar aims to become a net-zero carbon business by 2050, reflecting its commitment to environmental sustainability and responsible development practices.
In a statement to the Abu Dhabi Securities Exchange, where Aldar shares are traded, the company emphasized that the proceeds from the sukuk issuance would be utilized in accordance with its Green Finance Framework. This framework outlines the guidelines for investing in sustainable projects, encompassing a wide range of initiatives such as the construction of green buildings, property upgrades to enhance energy efficiency, sustainable water management, pollution control measures, and the implementation of renewable energy sources.
By adhering to its Green Finance Framework, Aldar Investment Properties demonstrates its dedication to promoting sustainable development and environmental stewardship within the real estate sector. The funds raised through the green sukuk issuance will be directed towards initiatives that contribute to reducing the company’s carbon footprint and fostering a more sustainable built environment.
The focus on green projects and sustainable practices is aligned with the UAE’s broader sustainability goals and commitment to combatting climate change. As part of the UAE Net Zero by 2050 strategic initiative, the country aims to significantly reduce its greenhouse gas emissions and transition towards a more sustainable and low-carbon economy. Aldar Investment Properties’ debut green sukuk issuance not only supports these national objectives but also positions the company as a leader in the region’s sustainable finance landscape.
The utilization of proceeds from the sukuk issuance will enable Aldar Investment Properties to implement various sustainability measures across its portfolio. This includes the development of green buildings that adhere to international sustainability standards, which promote energy efficiency and reduce overall resource consumption. Additionally, the funds will be allocated towards property upgrades that enhance energy efficiency in existing assets, contributing to long-term cost savings and reducing environmental impact.
Aldar Investment Properties also intends to invest in sustainable water management initiatives, focusing on implementing water conservation measures and utilizing innovative technologies to optimize water usage. By adopting best practices in water management, the company aims to minimize water wastage and ensure responsible usage throughout its operations.
Furthermore, the funds raised will support Aldar’s commitment to pollution control measures. The company will prioritize the implementation of environmentally friendly practices, such as the reduction of air and water pollution, waste management strategies, and the adoption of sustainable transportation solutions within its developments.
Renewable energy sources will also be a key focus for Aldar Investment Properties. The company aims to invest in and leverage renewable energy technologies to power its properties, reducing reliance on traditional energy sources and minimizing greenhouse gas emissions.
Aldar Investment Properties’ successful debut green sukuk issuance highlights the increasing importance of sustainable finance in the real estate sector. Investors are increasingly seeking opportunities that align with their environmental and social values, making green sukuk an attractive investment option. The issuance reflects Aldar’s commitment to responsible business practices, sustainability leadership, and its ongoing efforts to contribute positively to the UAE’s sustainability agenda.
As Aldar Investment Properties continues to expand its portfolio and advance its sustainability goals, the successful issuance of the debut green sukuk sets a strong precedent for future sustainable financing initiatives within the company. By incorporating sustainability into its core business strategy, Aldar Investment Properties is not only positioning itself as a responsible real estate developer but also driving positive change in the industry, contributing to the UAE’s broader sustainability objectives, and paving the way for a greener and more sustainable future.
