(MENAFN) Arada, a developer of residential and commercial properties in Sharjah, has completed a USD50 million second tap of its USD450 million sukuk, which was issued and traded on the London Stock Exchange in June of last year.
The corporation has made three attempts to access the capital markets in the previous nine months, and the investor reoffer yield for the five-year tap was 8.488 percent, according to a statement released by Arada on Monday.
Borrowers may sell bonds or other short-term debt instruments from earlier offerings through a process known as a tap issue. The bonds are sold at the current market price even if they were initially issued at their original face value, maturity, and coupon rate.
According to Ahmed Alkhoshaibi, group CEO of Arada, “we’re extremely happy to have achieved a size of $500 million on our inaugural sukuk via the last two tap transactions.”
Mr Alkhoshaibi also mentioned that “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.”
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