Arada has successfully closed a $50 million second tap of its existing $450 million sukuk, which was issued last June and listed on the London Stock Exchange.
The five-year tap is the UAE developer’s third approach to the capital markets in the last nine months, and saw an investor reoffer yield at 8.488 per cent.
Arada’s second tap follows a first tap executed in October 2022 for $100 million. At that time, Arada had received an exceptional response from international debt capital markets, which led to an oversubscribed transaction with orders of $185 million.
Mashreq acted as sole manager and bookrunner for the second tap.
Ahmed Alkhoshaibi, Group CEO of Arada, said: “We’re extremely happy to have achieved a size of $500 million on our inaugural sukuk via the last two tap transactions. This achievement is testament to the fact that investors have been tracking our story since May last year and have begun to appreciate and acknowledge our investor proposition, good governance record and credit strength.”
Arada’s existing five-year fixed rate RegS debut sukuk issuance was rated BB- by Fitch and B1 by Moody’s.
The proceeds for the sukuk will be used for general corporate purposes and to support development at Arada’s existing projects.