Arada has closed a $150 million tap of its $400 million sukuk, originally issued in June and listed on the London Stock Exchange and Nasdaq Dubai. This brings the total issuance under the developer’s $1 billion Sukuk programme to $550 million.
The tap was priced at $102.54, with a yield of 7.35%, and received strong demand, with the subscription order book reaching over $480 million, 3.2 times the offer size, excluding Joint Lead Managers’ demand. Arada’s debut sukuk issuance is rated BB- by Fitch and B1 by Moody’s.
Arada Group CEO Ahmed Alkhoshaibi highlighted the sustained investor interest in the company’s growth and prospects, noting that the tap reflects Arada’s strong governance, credit strength, and investor appeal.
The tap issue followed extensive investor roadshows across the UK and GCC and was driven by feedback from these engagements. Earlier in June, Arada’s second public financing deal, priced at 8.000%, saw a subscription order book of $1.45 billion, 3.5 times the offer size.
Proceeds from the sukuk will support general corporate purposes and the ongoing development of Arada’s existing projects. The developer has launched six successful projects in Sharjah and Dubai, with a combined sales value of Dh60 billion, and in 2023 reported a 100% increase in property sales to Dh7.02 billion.
In August, Arada expanded internationally with the launch of an office in Sydney and a project pipeline valued at Dh6 billion.
