Arada issues $450 million sukuk listed on LSE and Nasdaq Dubai

📷WAM

Dubai, July 29 (Saudi Arabia Breaking News) — Arada Developments LLC, rated B1 by Moody’s and B+ by Fitch, has successfully issued a $450 million sukuk, which is now listed on both the London Stock Exchange and Nasdaq Dubai, the company said on Monday.

The five-year fixed-rate RegS sukuk, rated BB- by Fitch and B1 by Moody’s, was priced with a 7.150% coupon. The offering tightened by 47.5 to 60 basis points from initial price guidance of 7.625%–7.750%, with a final spread of 317 basis points over U.S. Treasuries. According to Arada, this marks the tightest reoffer yield the company has achieved to date.

Proceeds from the sukuk will be used to finance a tender offer of up to $100 million for Arada’s existing 2027 sukuk, with the remainder allocated for general corporate purposes.

The issuance attracted strong demand, with the order book exceeding $2 billion—more than four times the offer size—excluding interest from Joint Lead Managers.

“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,” said HRH Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada. “This issuance serves as a platform for our next phase of growth as we continue to target opportunities both in the UAE and internationally.”

Investor participation was geographically diverse, with interest from Europe, the Middle East and Asia. The sukuk was purchased by banks, private banks, asset managers, fund managers, and hedge funds.

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank acted as Joint Global Coordinators. Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank served as Joint Lead Managers and Bookrunners.

Founded in 2017, Arada has launched nine projects in Sharjah and Dubai, and holds a project pipeline in the UAE and Australia valued at over AED90 billion. Since inception, it has sold more than 17,000 units with a total value of AED29 billion, and completed over 10,000 units.