Arada Developments has successfully raised $450 million through a five-year sukuk issuance, marking a strong return to the international debt markets. The deal attracted significant investor demand and was more than four times oversubscribed, reflecting strong confidence in the company’s financial performance and long-term growth prospects.
The RegS sukuk was priced with a fixed coupon of 7.150 percent, while peak orders exceeded $2 billion, excluding the joint lead managers. Due to the strong demand, the transaction was priced 47.5 to 60 basis points tighter than the initial guidance range of 7.625 to 7.750 percent, eventually landing at a spread of 317 basis points over US Treasuries.
The sukuk has been rated BB- by Fitch and B1 by Moody’s, and the securities have been listed on both the London Stock Exchange and Nasdaq Dubai, allowing global investors to participate in the issuance.
According to the company, part of the funds raised will be used to finance a tender offer of up to $100 million for Arada’s outstanding 2027 sukuk, while the remaining proceeds will be allocated toward general corporate purposes, supporting the company’s ongoing expansion and operations.
Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, said the strong response from investors demonstrates confidence in the company’s strategy and performance. He noted that the successful return to global markets highlights the trust that both regional and international investors place in Arada’s track record, strong financial position, and future growth outlook.
The sukuk issuance attracted broad participation from investors across Europe, the Middle East, and Asia, including banks, private banks, asset managers, hedge funds, and other institutional investors.
Several major financial institutions acted as joint global coordinators for the transaction, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered. The joint lead managers and bookrunners included Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank, and Warba Bank.
Arada, which began operations in 2017, has rapidly expanded its presence in the real estate sector. The company has delivered more than 10,000 residential units and sold over 17,000 homes valued at approximately Dh29 billion. Its development pipeline now includes projects across the United Arab Emirates and Australia, with a total estimated value exceeding Dh90 billion.