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Sharjah’s largest developer Arada Developments closed a five-year USD 400 mn sukuk issuance, listing it on the London Stock Exchange and Nasdaq Dubai, state news agency Wam reports. The issuance was priced at par with a coupon of 8%, with a spread of 355 bps over US Treasuries — marking one of the highest price tightening from a real estate issuer in the GCC, according to the news agency. It was rated B1 by Moody’s and B+ by Fitch.
The issuance was 3.5x oversubscribed, drawing some USD 1.45 bn in orders from institutional investors, fund managers, high net worth individuals and banks in Europe, the Middle East and Asia, Wam said.
The proceeds will be used for general corporate purposes and to support its projects, as well as the management of existing bilateral funding.
This marks the developer’s second sukuk issuance, following its debut USD 359 mn issuance in 2022, and is the first under a new USD 1 bn sukuk program.
ADVISORS- Our friends at Mashreq, along with RAK Bank, Sharjah Islamic Bank, Kamco Invest, Arab Bank, and Warba Bank, acted as joint lead managers and bookrunners. Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, and Standard Chartered Bank were joint global coordinators.
