DUBAI- Abu Dhabi’s biggest property developer, Aldar, is ground working on international bond insurance soon, two sources familiar with the matter said.
The planned debt sale arrives as Gulf borrowers lay on to tap the international debt markets to support finances hit by the COVID-19 pandemic and low oil prices.
Aldar, the state-linked builder of Abu Dhabi’s Formula One circuit, did not suddenly respond to a request for comment.
Mature market conditions have led to record-setting deals in recent weeks, counting the region’s lowest-yielding Additional Tier 1 issuance from Saudi Arabia’s biggest lender, National Commercial Bank, and the lowest coupon on Gulf bank senior bonds from Qatar National Bank, the Gulf’s biggest lender.
Oman and Bahrain, the region’s feeble credits, were the first Gulf sovereigns to tap the market this year. After an agreement that fell short of assumptions in October, Oman raised $3.25 billion this month in an offering that was closed five times oversubscribed. Bahrain’s $2 billion problems were more than five times oversubscribed.
Real estate was one of the primary sectors that were blown-down by Coivd-19.
At the starting of this month, Aldar’s shares rushed after a framework accord with the Abu Dhabi government according to which the company will take on the management of 30 billion dirhams ($8.17 billion) worth of major projects in the emirate.
Aldar last issued international Sukuk, or Islamic bonds, in 2019, raising $500 million.