UAE’s Arada Developments Obtains USD 100 Million Through Existing Sukuk Reopening
October 21, 2022 | Updated at January 12, 2023
United Arab Emirates- (UAE) based real estate developer, Arada Developments (Arada), has secured financing worth USD 100 million via Sukuk on the 20th of October 2022 through the reopening of an offering made in May 2022 which had raised USD 350 million, as per a bank document.
Why it Matters?
The reopening transaction comes as Gulf issuers have seized the opportunities to issue in stormy markets, as bond sales dropped in 2022 due to ongoing volatility and rising rates. The order book size was not made public and yielding investors received an 8.386% yield on the Sukuk tap, which had a price of 99 cents on the dollar. The offer received government support including access to premium land allotment, financial flexibility, and a guarantee for a loan of...