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Arada Developments has successfully raised $450m through a five-year sukuk issuance, marking a strong return to international debt markets with a deal that was more than four times oversubscribed.
The RegS Sukuk, priced with a fixed coupon of 7.150 per cent, drew peak orders exceeding $2bn, excluding joint lead managers.
The transaction priced 47.5 to 60 basis points tighter than initial guidance of 7.625 to 7.750 per cent, landing at a spread of 317 bps over US Treasuries.
The paper is rated BB- by Fitch and B1 by Moody’s and has been listed on both the London Stock Exchange and Nasdaq Dubai.
Proceeds from the issuance will partly fund a tender offer of up to $100m for Arada’s outstanding 2027 Sukuk, with the remainder earmarked for general corporate purposes.
Arada sukuk attracts interest for investors in Europe, Middle East and Asia
Prince Khaled bin Alwaleed bin Talal, executive VC of Arada, said the strong investor response was a vote of confidence in the company’s performance and future prospects. “Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada’s track record, robust financial position and growth prospects,” he said.
The sukuk attracted broad investor interest across Europe, the Middle East and Asia, with participation from banks, private banks, asset managers, hedge funds and other institutional investors.
Joint global coordinators for the transaction were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered. Joint Lead Managers and Bookrunners included Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank.
Arada, which launched operations in 2017, has delivered over 10,000 units to date and sold more than 17,000 homes valued at Dhs29bn.
Its project pipeline spans the UAE and Australia, with a total value exceeding Dhs90bn.
Read: How Arada is expanding its presence in UAE’s luxury property market
