Dentons advises Arada Developments

Dentons has advised Arada Developments LLC (Arada), the largest property developer in the Northern Emirates of the United Arab Emirates, on its drawdown issuance of USD400 million sukuk due 2029. The transaction was completed on 24 June 2024. The issuance drew a subscription order book of USD1.45 billion and was more than three and a half times oversubscribed. Dentons also advised on the related 4 June 2024 establishment of Arada’s USD1 billion Trust Certificate Issuance Programme.

A number of international and local banks acted as joint lead managers and bookrunners in respect of the issuance.

The issuance was 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.

Debt Capital Markets partner Alex Roussos, based in Dentons‘ Dubai office, commented: “We are delighted and proud to have supported the company on the establishment of its sukuk programme and its inaugural issuance under that programme. A very successful transaction for the company which demonstrates the strength of regional capital markets and the ongoing appeal of issuers from the real estate sector, which we hope will continue for the foreseeable future.”

The Dentons team in Dubai was led by partner Alex Roussos, with assistance from senior legal consultant Katie Phillips and senior associate James Osun-Sanmi.