Dentons advises Arada Developments LLC on the US$150 million tap issuance of its US$400 million sukuk due 2029

Dentons has advised Arada Developments LLC (Arada), the largest property developer in the Northern Emirates of the United Arab Emirates, on a US$150 million tap of its drawdown issuance of US$400 million sukuk due 2029. The tap issuance was completed on 1 October 2024. Dentons also advised on the related 24 June 2024 original issuance and the 4 June 2024 establishment of Arada’s US$1 billion Trust Certificate Issuance Programme.

The tap issuance increased the overall amount of sukuk outstanding (at US$550 million) to above benchmark size. The sukuk was priced at US$102.54 with a yield of 7.35% per annum (a 15 basis points tightening from initial pricing thoughts). Excluding demand from joint lead managers, the subscription order book for the tap issuance reached more than US$480 million, making it 3.2 times oversubscribed.

The issuance is rated B1 by Moody’s and BB- by Fitch. It was listed on the London Stock Exchange’s International Securities Market and on Nasdaq Dubai, and was offered to sophisticated investors outside the US in reliance on Regulation S under the US Securities Act 1933.

The Dentons team in Dubai was led by partner Alex Roussos, with assistance from senior legal consultant Katie Phillips and senior associate James Osun-Sanmi.