emirates7 - Arada Developments LLC, rated B1 by Moody’s and B+ by Fitch, has successfully issued a US$450 million Sukuk, which is now listed on both the London Stock Exchange and Nasdaq Dubai.
This five-year fixed-rate RegS Sukuk, rated BB- by Fitch and B1 by Moody’s, was priced at a 7.150% coupon. This reflects a tightening of 47.5 to 60 basis points from the initial price guidance range of 7.625% to 7.750%, representing a spread of 317 basis points over US Treasuries—the tightest reoffer yield Arada has ever achieved.
The funds raised will be partially used for a tender offer of up to US$100 million on Arada’s existing Sukuk maturing in 2027, with the remainder allocated for general corporate purposes.
Demand for the Sukuk was very strong from both regional and international investors, with subscription orders exceeding US$2 billion (excluding Joint Lead Managers), more than four times the offer size.
HRH Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, commented, “Our recent successful return to the global markets highlights the continued confidence regional and international investors have in Arada’s proven track record, solid financial standing, and growth potential. This issuance marks a foundation for our next growth phase as we pursue opportunities within the UAE and internationally.”
Investor interest was geographically diverse, spanning Europe, the Middle East, and Asia, including banks, private banks, asset and fund managers, and hedge funds.
The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered Bank. Meanwhile, Joint Lead Managers and Bookrunners included Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank, and Warba Bank.
Since its establishment in 2017, Arada has launched nine successful projects across Sharjah and Dubai, with a development pipeline worth over AED 90 billion in the UAE and Australia. To date, Arada has sold more than 17,000 units valued at over AED 29 billion, with over 10,000 units already completed.
This five-year fixed-rate RegS Sukuk, rated BB- by Fitch and B1 by Moody’s, was priced at a 7.150% coupon. This reflects a tightening of 47.5 to 60 basis points from the initial price guidance range of 7.625% to 7.750%, representing a spread of 317 basis points over US Treasuries—the tightest reoffer yield Arada has ever achieved.
The funds raised will be partially used for a tender offer of up to US$100 million on Arada’s existing Sukuk maturing in 2027, with the remainder allocated for general corporate purposes.
Demand for the Sukuk was very strong from both regional and international investors, with subscription orders exceeding US$2 billion (excluding Joint Lead Managers), more than four times the offer size.
HRH Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, commented, “Our recent successful return to the global markets highlights the continued confidence regional and international investors have in Arada’s proven track record, solid financial standing, and growth potential. This issuance marks a foundation for our next growth phase as we pursue opportunities within the UAE and internationally.”
Investor interest was geographically diverse, spanning Europe, the Middle East, and Asia, including banks, private banks, asset and fund managers, and hedge funds.
The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered Bank. Meanwhile, Joint Lead Managers and Bookrunners included Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank, and Warba Bank.
Since its establishment in 2017, Arada has launched nine successful projects across Sharjah and Dubai, with a development pipeline worth over AED 90 billion in the UAE and Australia. To date, Arada has sold more than 17,000 units valued at over AED 29 billion, with over 10,000 units already completed.