Dentons advises Arada Developments LLC

Dentons has advised Arada Developments LLC (Arada), the largest property developer in the Northern Emirates of the United Arab Emirates, on a USD150 million tap of its drawdown issuance of USD400 million sukuk due 2029. The tap issuance was completed on October 1, 2024. Dentons also advised on the related June 24, 2024 original issuance and the 4 June 2024 establishment of Arada’s USD1 billion Trust Certificate Issuance Programme.

The tap issuance increased the overall amount of sukuk outstanding (at USD550 million) to above benchmark size. The sukuk was priced at USD102.54 with a yield of 7.35 per cent 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.

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.