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MENAFN- Mid-East Info)
Transaction marks first post-conflict UAE real estate debt issuance
Five-year offering priced with a coupon of 8.875% attracted order book of over $700 million, with subscription reaching 2x at its peak
Sukuk assigned expected ratings of BB- by Fitch and B1 by Moody's
Dubai, United Arab Emirates:October 2026 – Arada Developments LLC (“Arada”), rated B1 by Moody's and B+ by Fitch, has successfully returned to the global debt markets via a successful issuance of a $400 million Senior Unsecured Sukuk, which has been listed on the London Stock Exchange and Nasdaq Dubai.
The transaction marks the first issuance by a UAE real estate developer since the outbreak of the regional conflict in February 2026, highlighting Arada's credit strength via the Company's continued access to international debt capital markets despite heightened geopolitical uncertainty and a volatile market backdrop.
The five-year fixed-rate Reg S Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 8.875% from the initial price thoughts of 9.375%.
The offering attracted strong demand from regional and international investors, with the final order book closing in excess of $700 million, excluding Joint Lead Manager interest.
The issuance is expected to be largely leverage-neutral, with a portion of the proceeds intended to fund a capped tender offer of up to US$180 million for Arada's existing sukuk, as part of its broader debt management strategy ahead of the US$411.7 million 8.125% sukuk maturity in June 2027.
HRH Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada, said:“Our return to the international debt markets is a testament to the resilience of Arada's business and the enduring confidence of regional and global investors not just in our story, but in UAE real estate more generally. Despite a period of significant disruption across the region, we were able to attract strong demand from a diversified investor base, and we are grateful for that continued trust as we pursue our next phase of growth.”
The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, Goldman Sachs International, JP Morgan Securities, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners.
Since its launch in 2017, Arada Group has expanded across the UAE and into the Australian, UK, Syrian and Saudi property markets, with a global pipeline of existing and future projects valued at over AED185 billion. In total, Arada has sold over 20,000 units in the UAE since inception, valued at over AED40 billion, with over 17,000 units completed worldwide.
About Arada:
One of the world's fastest-growing master developers, Arada was created to build spaces people connect with for healthier, happier and more meaningful lives.
The master developer has operations in the United Arab Emirates, the United Kingdom, Australia, the Kingdom of Saudi Arabia and Syria.
Arada's vertically integrated scope of operation covers property development, retail, education, healthcare, fitness, wellness, industry, hospitality, investment and asset management.
Arada has a project pipeline valued at AED185 billion and a portfolio of more than 70,000 homes worldwide.
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