Arada concludes $150mln tap of existing $400mln Sukuk issuance

The tap was priced at $102.54 with tap yield of 7.35% (representing a 15bps tightening from Initial Pricing Thoughts). Excluding Joint Lead Managers’ demand, the subscription orderbook peaked at over $480 million, 3.2 times the offer size.

Arada’s existing five-year fixed rate RegS debut Sukuk issuance is rated BB- by Fitch and B1 by Moody’s.

“Part of our ongoing $1 billion Sukuk programme, this successful tap underlines our strong governance record, attractive investor proposition and credit strength.”

As part of Arada's continuing investor engagement and interaction, more recently via extensive roadshows across the UK and GCC, this tap issue was executed on the back of investor feedback and enquiries. It follows Arada’s second public financing deal in June, which was priced at 8.000% and received a subscription order book of $1.45 billion, 3.5 times the offer size.  

The Joint Global Coordinators for the tap were Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreq, Sharjah Islamic Bank, and Standard Chartered Bank.

The Joint Lead Managers and Joint Bookrunners for the tap were Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Band and Warba Bank.

The proceeds for the sukuk will be used for general corporate purposes and to support development at Arada’s existing projects.

In 2022, Moody’s and Fitch assigned Arada first-time credit ratings, of B1 and B+ respectively, both with a stable outlook.

Since its launch in 2017, Arada has launched six successful projects in both Sharjah and Dubai, with a combined sales value of AED60 billion. These include Sharjah’s largest ever mixed-use megaproject, Aljada; the UAE’s first forested community, Masaar; and the ultra-luxury Armani Beach Residences at Palm Jumeirah.

In 2023, the master developer announced a 100% increase in the total value of property sold to AED7.02 billion, compared to the previous year. In total, Arada has sold over 14,000 units since inception, with over 10,000 units completed. In August this year, Arada also announced its first overseas expansion into the Australian property market, with the launch of an office in Sydney, alongside a project pipeline valued at AED6 billion.