Dentons advises Arada Developments LLC on their US50 million sukuk tap issuance

Dentons has advised Arada Developments LLC (Arada), the largest property developer in the Northern Emirates of the United Arab Emirates, on their successful second tap issuance of USD50 million sukuk (to be consolidated and form a single series with the existing USD350 million sukuk due 2027 issued on June 8, 2022 and USD100 million sukuk due 2027 issued on October 27, 2022 by Arada Sukuk Limited). The transaction was successfully completed on February 16, 2023, with Mashreqbank psc (acting through its Islamic Banking Division) as sole manager of the issuance. Dentons also advised Arada on the first tap issuance of USD100 million sukuk due 2027 issued on October 27, 2022.

Arada was assigned long credit term ratings of B1 (stable outlook) by Moody’s and B+ (stable outlook) by Fitch. The issuance was listed on the London’s Stock Exchange’s International Securities Market, and was offered to sophisticated investors outside the US in reliance on Regulation S under the US Securities Act 1933.

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