Arada Developments, rated B1 by Moody’s and B+ by Fitch, has appointed banks to arrange a sukuk issuance, aligning with a broader trend among regional property developers turning to debt markets amid a construction surge in the GCC.
The company has selected Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered as joint global coordinators.
A global investor call, along with a series of fixed-income investor briefings, commenced on Thursday.
The proposed issuance is a five-year fixed-rate sukuk under Regulation S, benchmarked in US dollars. It is expected to receive B1/BB- ratings from Moody’s and Fitch and will be issued through Arada Sukuk 2 Limited’s USD 1 billion Trust Certificate Issuance Programme.
Arada has also launched a capped tender offer of up to USD 100 million in face value for its USD 500 million Trust Certificates maturing in 2027, as part of its strategy to optimise funding costs, maturity structure, and balance sheet management.
This marks Arada’s first sukuk issuance of the year, with proceeds earmarked for new land acquisitions
