UAE property developer Arada has raised USD 400 million through a five-year senior unsecured sukuk, returning to international debt markets with an offering listed on Nasdaq Dubai and the London Stock Exchange.
The sukuk carries an 8.875 per cent coupon, compared with initial pricing guidance of 9.375 per cent. Arada said the final order book exceeded USD 700 million, excluding joint lead manager interest, and demand reached twice the issue size at its peak.
The offering received expected ratings of BB- from Fitch and B1 from Moody’s.
Debt management plans
Arada said it intends to use part of the proceeds for a capped tender offer of up to USD 180 million for existing sukuk, ahead of a USD 411.7 million sukuk maturity in June 2027. The developer expects the new issuance to be largely leverage-neutral.
Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, said the transaction demonstrated continued confidence from regional and international investors.
Arada said its global development pipeline exceeds AED 185 billion, with more than 20,000 units sold in the UAE since its establishment in 2017.
