A $450 million Sukuk has been successfully issued by Arada Developments, which has been rated B1 by Moody’s and B+ by Fitch. The Sukuk is now listed on the London Stock Exchange and the Nasdaq Dubai.
With a coupon of 7.150 percent, the five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody’s, tightened 47.5 to 60 basis points from the initial price guidance of 7.625 to 7.750 percent for a spread of 317 basis points over US Treasuries, marking Arada’s tightest reoffer yield to date. The proceeds of the issue will be utilized for general corporate purposes and for a tender offer of up to US$100 million on Arada’s current Sukuk expiring in 2027.
With a subscription order book that peaked at over $2 billion (excluding Joint Lead Managers), more than four times the offer size, the Sukuk issuance witnessed significant interest from both domestic and foreign investors.
“Our most recent successful return to the global markets reflects once again the trust that regional and international investors are placing in Arada’s track record, strong financial position, and growth prospects,” stated Prince Khaled Bin Alwaleed Bin Talal, Executive Vice Chairman of Arada.
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