Arada Developments LLC, holding a B1 rating from Moody’s and a B+ from Fitch, has triumphantly concluded its second public financing venture, issuing a $400 million sukuk that is now listed on both the London Stock Exchange and Nasdaq Dubai. This marks the inaugural transaction under Arada’s recently launched $1 billion sukuk program. The five-year fixed rate RegS sukuk, with a BB- rating from Fitch and a B1 from Moody’s, was issued at par with an 8.000% coupon, surpassing the initial guidance of 8.675% and offering a spread of 355 basis points over US Treasuries. This deal represents a significant price tightening for a GCC real estate issuer and boasts a spread more than 150 basis points tighter than the debut sukuk. The funds raised will aid in managing existing bilateral financing, serve general corporate needs, and bolster development across Arada’s current projects. The sukuk attracted robust interest from both regional and global investors, amassing a subscription order book of $1.45 billion, over three times the offering size. Prince Khaled bin Alwaleed bin Talal, the vice-chairman of Arada, expressed satisfaction with the successful market return through this second sukuk issuance, highlighting the strong global investor interest in Arada’s robust track record, governance, and growth narrative. The investor base for this issuance was geographically diverse, encompassing Europe, the Middle East, and Asia, and included a mix of institutional investors, fund managers, High Net Worth Individuals, and banks. The joint global coordinators for the sukuk were Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, and Standard Chartered Bank, with Arab Bank, Kamco Invest, Mashreq, RAK Bank, Sharjah Islamic Bank, and Warba Bank serving as joint lead managers and Bookrunners. Since its inception in 2017, Arada has introduced six successful projects across Sharjah and Dubai, totaling Dh60 billion in sales value, including Sharjah’s largest mixed-use megaproject, Aljada; the UAE’s inaugural forested community, Masaar; and the exclusive Armani Beach Residences at Palm Jumeirah. In 2023, Arada reported a doubling of the total property sales value to Dh7.02 billion, up from the previous year, with a cumulative sale of 14,000 units worth over Dh17 billion, of which over 9,000 units have been completed.