Dubai: The Sharjah master-developer Arada has 'tapped' $100 million from its existing $350 million Sukuk issued in June last and listed on LSE. The tap was priced at 99 cents on the dollar. (A ‘tap’ is a way of issuing new bonds based on past debt issues.)
“Arada continues to expand at an extremely rapid pace,” said Ahmed Alkhoshaibi, Group CEO. “To maintain that aggressive growth strategy, we took the decision to tap the markets opportunistically to secure the capital that will guarantee our plans remain on track.
“This exceptional response and oversubscription from the international debt capital markets is a further sign of faith in Arada’s impressive growth trajectory, fundamentals and future prospects.”
The investor yield on the tap issue is 8.386 per cent. Arada’s existing five-year fixed rate RegS debut Sukuk issuance was rated BB- by Fitch and B1 by Moody’s.
“We’re especially pleased to have closed this issuance during an uncertain time for global markets, which is again a hugely positive endorsement of our investor proposition, good governance record and credit strength,” the CEO added.
In May, Moody’s and Fitch assigned Arada first-time ratings, of B1 and B+, with a stable outlook.
The developer is on track for a year-on-year 25 per cent increase in value of property sold in 2022 to Dh3 billion. It is aiming for completion of 4,000 homes this year. Arada has sold nearly 11,000 units since inception, valued at over Dh8 billion, and has to date completed 2,600 units, with another 27,500 homes in the pipeline.
Recently, it announced the addition of a 'central business district' at Aljada, the flagship project it has in Sharjah.
