Arada successfully concludes $150m sukuk tap

Arada has successfully closed a $150m tap of its existing $400m sukuk, originally issued in June and listed on both the London Stock Exchange and Nasdaq Dubai.

This tap, part of Arada’s overarching $1bn sukuk programme, increases the total issuance to $550m.

The tap was priced at $102.54, yielding 7.35 per cent, a 15 basis points tightening from initial pricing thoughts.

Excluding demand from joint lead managers, the subscription order book reached over $480m, making it 3.2 times oversubscribed.

Fitch rates the sukuk BB- and Moody’s assigns it a B1 rating, reflecting Arada’s credit strength and governance.

Arada sukuk programme attracts significant global interest

Ahmed Alkhoshaibi, group CEO of Arada, expressed satisfaction with the strong investor interest, noting that this success reaffirms the company’s growth potential.

“Our ongoing $1bn sukuk programme continues to attract significant global interest, underscoring our strong governance record and attractive investor proposition,” Alkhoshaibi stated.

The tap follows Arada’s earlier financing deal in June, which was also well-received, generating a subscription order book of $1.45bn, 3.5 times the offer size.

The proceeds from the sukuk will be allocated for general corporate purposes and to bolster development across its current projects.

The joint global coordinators for the tap included Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreq, Sharjah Islamic Bank, and Standard Chartered Bank, with these institutions also serving as Joint Lead Managers and Joint Bookrunners.

Since its establishment in 2017, the company has launched six projects in Sharjah and Dubai with a total sales value of Dhs60bn. Developments include Sharjah’s largest mixed-use megaproject, Aljada, and the UAE’s first forested community, Masaar.

In 2023, the company reported a 100 per cent increase in property sales value to Dhs7.02bn, with over 14,000 units sold and more than 10,000 completed.

The company has also expanded internationally, launching its first overseas office in Sydney, Australia, with a project pipeline valued at Dhs6bn.