Dentons with Arada on the US$150 million tap issuance
Dentons advised Arada Developments, 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.
Dentons’ team
The Dentons team in Dubai was led by partner Alex Roussos (pictured), with assistance from senior legal consultant Katie Phillips and senior associate James Osun-Sanmi.
About the issuance
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.
