UAE-headquartered property developer Arada Developments has mandated banks to arrange a five-year fixed-rate Regulation S US dollar benchmark sukuk issuance and launched a concurrent cash tender offer, Zawya reported. Arada is rated B1 by Moody's and B+ by Fitch, both carrying a negative outlook. Global investor calls and fixed-income investor meetings commence on 20 October 2026.
The benchmark sukuk carries an expected rating of B1 from Moody's and BB- from Fitch and will be issued under Arada Sukuk 2 Limited's $1.5 billion Trust Certificate Issuance Programme. The issuance is slated for dual listing on Nasdaq Dubai and the International Securities Market, with ICMA and FCA market stabilisation rules applying.
For the sukuk offering, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered Bank have been mandated as joint global coordinators. They are joined as joint lead managers and bookrunners by Arab Bank, Arqaam Capital, Bank ABC, Goldman Sachs International, JP Morgan, Mashreqbank (via its Islamic banking division), Sharjah Islamic Bank, and Warba Bank.
Alongside the planned issuance, Arada launched a tender offer inviting holders of Arada Sukuk Limited's outstanding Trust Certificates due 2027 to tender their certificates for cash. The tender offer applies to the outstanding aggregate principal amount of $411.7 million remaining from the original $500 million issuance, subject to terms specified in the offer memorandum.
Sources
- TradingView · 2026-10-20
