Arada Developments Launches $400 Million Five-Year Sukuk Offering
The UAE property developer’s dollar-denominated sukuk carries an annual coupon of 8.875% and is set to list on Nasdaq Dubai and the International Securities Market.
Arada Developments, a UAE-based real estate developer, has launched a five-year sukuk offering worth $400 million as part of its corporate financing activities. The fixed-rate, dollar-denominated Islamic bond carries a coupon rate of 8.875%.
The issuance is being marketed to international investors under Regulation S, which governs certain securities offerings outside the United States. Arada has also initiated a tender offer alongside the new sukuk transaction.
The securities are expected to be listed on Nasdaq Dubai and the International Securities Market, providing investors with access to the debt instrument through recognised financial markets.
Arada carries credit ratings of B1 from Moody’s and B+ from Fitch, with both agencies maintaining a negative outlook. These ratings reflect the agencies’ assessment of the company’s credit profile and the risks associated with its financial obligations.
The sukuk transaction highlights the role of debt capital markets in financing the activities of UAE property developers. Such instruments can provide companies with an alternative to traditional bank borrowing while allowing investors to participate in corporate financing.
For the UAE real estate sector, developer financing remains an important business development to follow as companies manage their funding requirements and pursue their growth strategies.
END.
