Aldar Secures Dh5 Billion Sustainability-Linked Loan to Boost Liquidity: Gulf News
Aldar raises Dh5 billion via a sustainability-linked loan, lifting total liquidity to Dh38.2 billion to support Abu Dhabi real estate expansion.
Tripti Srivastava 
Aldar has secured a Dh5 billion sustainability-linked revolving credit facility, strengthening its liquidity position to Dh38.2 billion as the Abu Dhabi-based developer prepares to fund future growth projects, according to Gulf News.
The five-year syndicated loan, backed by a consortium of 10 UAE, regional and international banks, marks one of the company’s largest recent financing moves and underscores continued lender confidence in the emirate’s real estate sector.
The newly secured facility increases Aldar’s total available liquidity to Dh38.2 billion, comprising Dh13.9 billion in cash and Dh24.4 billion in undrawn committed credit lines. The expanded liquidity base provides the developer with significant financial flexibility to pursue large-scale projects and manage capital requirements.
The company said its average senior debt maturity now stands at five years, while undrawn committed facilities have an average maturity of approximately three and a half years. These numbers show that the debt is well-balanced and that the refinancing process is manageable.
Sustainability-Linked Financing Structure
The loan is structured as a sustainability-linked revolving credit facility, meaning borrowing costs are tied to the company’s performance against predefined environmental, social and governance (ESG) targets. This structure aligns financing with sustainability outcomes, a growing trend in global capital markets.
This marks Aldar’s second such facility, following a Dh9 billion sustainability-linked financing completed in January 2025. The repeat issuance reflects the company’s continued focus on integrating ESG benchmarks into its funding strategy.
The facility includes both conventional and Islamic financing tranches, denominated in UAE dirhams and US dollars. This dual-structure approach broadens participation among lenders and enhances flexibility in capital deployment.
The financing was arranged through a syndicated process involving multiple financial institutions across local, regional and international markets. The company noted that the book-building process began in February and progressed as planned, with strong backing from participating banks.
According to the company’s finance leadership, the transaction demonstrates confidence in Aldar’s diversified business model and long-standing relationships with financial institutions. The level of participation also reflects broader investor confidence in the UAE’s economic stability and real estate growth prospects.
The support from lenders highlights the attractiveness of Abu Dhabi’s property sector, which has remained resilient amid global economic uncertainty and continues to draw institutional capital.
Funding to Support Growth Pipeline
The facility is expected to finance future development projects and strengthen Aldar’s ongoing expansion strategy. The company has been actively growing its portfolio across residential, commercial, and mixed-use developments in Abu Dhabi.
The enhanced liquidity position enables Aldar to respond to market opportunities, accelerate project timelines, and maintain operational flexibility. It also positions the developer to manage potential market fluctuations while sustaining investment in new assets.
With significant undrawn facilities available, the company retains the ability to deploy capital as required without immediate reliance on additional borrowing.
The financing comes amid continued strength in Abu Dhabi’s real estate market, supported by government initiatives, population growth, and increasing investor interest. The sector has benefited from policy measures aimed at attracting foreign investment and diversifying the economy beyond hydrocarbons.
Sustainability-linked financing is gaining traction in the UAE as companies align funding strategies with ESG commitments. Developers such as Aldar are increasingly leveraging these instruments to support environmentally responsible growth while accessing competitive financing terms.
The latest transaction reinforces Aldar’s position as a key player in the UAE property market and highlights the role of innovative financing structures in supporting large-scale infrastructure and real estate development.
With a strengthened balance sheet and access to substantial liquidity, Aldar is well positioned to continue executing its growth strategy while aligning with global sustainability standards in capital markets.
