Dentons advises Arada Developments LLC on their US50 million sukuk tap issuance

Dentons has advised Arada Developments LLC (Arada), the largest property developer in the Northern Emirates of the United Arab Emirates, on their successful second tap issuance of US$50 million sukuk (to be consolidated and form a single series with the existing US$350 million sukuk due 2027 issued on 8 June 2022 and US$100 million sukuk due 2027 issued on 27 October 2022 by Arada Sukuk Limited). The transaction was successfully completed on 16 February 2023 with Mashreqbank psc (acting through its Islamic Banking Division) as sole manager of the issuance. Dentons also advised Arada on the first tap issuance of US$100 million sukuk due 2027 issued on 27 October 2022.

Arada was assigned long credit term ratings of B1 (stable outlook) by Moody’s and B+ (stable outlook) by Fitch. The issuance was listed on the London’s Stock Exchange’s International Securities Market, 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, senior associate James Osun-Sanmi and trainee Hamad Yasin.