Chicago, June 3 – Arada Developments LLC closed its $350 million 8 1/8% debut sukuk with a five-year tenor (B1//BB-), according to a press release on the company’s website.
The sukuk lists trustee Arada Sukuk Ltd. as issuer.
The offer priced at par with a spread of 530 basis points over Treasuries. Talk was guided in the 8¼% area.
Joint global coordinators were Standard Chartered Bank, Dubai Islamic Bank and Emirates NBD Capital, while Abu Dhabi Commercial Bank, Ajman Bank, Al Rajhi Capital, Mashreq, Sharjah Islamic Bank, Kamco Invest and Warba Bank.
Proceeds will be used for the management of existing bilateral funding, general corporate purposes and to support development at Arada’s existing projects
Demand was at $720 million for the Regulation S issue.
The sukuk was listed on the London Stock Exchange.
Since its launch in 2017, the real estate company has launched master planned projects in Sharjah.
| Issuer: | Arada Sukuk Ltd.
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| Amount: | $350 million
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| Issue: | Sukuk
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| Tenor: | Five years
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| Bookrunners: | Standard Chartered Bank, Dubai Islamic Bank and Emirates NBD Capital, while Abu Dhabi Commercial Bank, Ajman Bank, Al Rajhi Capital, Mashreq, Sharjah Islamic Bank, Kamco Invest and Warba Bank
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| Coupon: | 8 1/8%
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| Price: | Par
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| Yield: | 8 1/8%
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| Spread: | Treasuries plus 530 bps
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| Settlement date: | June 1
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| Ratings: | Moody’s: B1
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| Fitch: BB-
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| Distribution: | Regulation S
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| Price talk: | 8¼% area
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