Arada Developments taps market with $150 million sukuk issuance, expanding its financial strategy

Arada Developments LLC, a Sharjah-based real estate developer, has successfully executed a $150 million tap issuance as part of its $400 million sukuk due in 2029. This move highlights the company’s continued efforts to strengthen its financial portfolio while supporting its ambitious real estate projects across the UAE. The additional sukuk issuance follows a $400 million offering earlier in 2024, which was heavily oversubscribed, demonstrating significant investor confidence in Arada’s financial health and growth potential.

The $150 million tap issuance was priced at a 99.88% reoffer yield, with a profit rate of 8.125%. Arada, rated B1 by Moody’s and B+ by Fitch, has made substantial strides in the regional and international debt markets. The sukuk tap was issued under the company’s $1 billion sukuk programme, and its success reaffirms Arada's strong market presence. Proceeds from the issuance are intended to facilitate ongoing developments and refinance existing bilateral debt.

Investor interest has been geographically diverse, with strong participation from institutions across Europe, the Middle East, and Asia. The subscription to Arada’s sukuk reflects confidence in the company's ability to deliver on its large-scale projects, particularly in Sharjah, where it has developed major initiatives like Aljada and Masaar. Arada’s Vice Chairman, Prince Khaled bin Alwaleed bin Talal, remarked that the success of these sukuk issuances highlights the company’s commitment to sound governance and transparency, which has been pivotal in attracting global investors.