UAE’s Arada Developments mandates USD 5-year sukuk, launches tender offer

By Zawya

By Staff Writer

The UAE-headquartered Arada Developments, rated B1/B+ (both negative outlook) by Moody’s and Fitch, is marketing a five-year fixed rate Regulation S dollar benchmark sukuk issuance, along with a tender offer.

For the sukuk, the real estate developer has mandated Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arab Bank, Arqaam Capital, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, JP Morgan, Mashreqbank (acting through its Islamic banking division), Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank as the joint lead managers and bookrunners.

ADCB, ADIB, DIB, ENBD Capital, FAB, Mashreq and Standard Chartered have also been appointed as joint global coordinators.

Global investor calls, as well as a series of fixed income investor calls commence 20 October.

The benchmark issuance has an expected rating of B1/BB- by Moody’s/Fitch and will fall under Arada Sukuk 2 Limited’s $1.5 billion Trust Certificate Issuance Programme.

A listing on the International Securities Market and Nasdaq Dubai will follow.ICMA/FCA stabilisation applies.Tender offer

Holders of Arada Sukuk Limited's outstanding Trust Certificates due 2027, representing an aggregate principal amount of $411.7 million out of the original $500 million issuance, have been invited to tender their certificates for purchase by Arada for cash, subject to the offer's terms and conditions.

The company has set up a maximum acceptance amount equal to the aggregate amount of the New Certificates less $200 million, which may be amended at Arada’s sole discretion at any time prior to the tender results announcement.

The offer commences on 20 October 2026 and will expire at 16:00 hours (London time) on 26 October 2026.Emirates NBD Capital, Mashreqbank and Standard Chartered Bank are the dealer mangers on the offer.Incorporated in 2017, Arada Developments is Sharjah’s largest real estate developer.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com

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