Arada Developments Launches Five-Year Sukuk and Tender Offer in Sharjah

Sharjah's largest real estate developer, Arada Developments, has initiated efforts to market a five-year fixed-rate US dollar benchmark sukuk issuance. The company, rated B1 by Moody's and B+ by Fitch (both with negative outlooks), will issue the sukuk under Arada Sukuk 2 Limited’s existing $1.5 billion Trust Certificate Issuance Programme.

Global Investor Engagement

Arada has appointed a consortium of major financial institutions as joint lead managers and bookrunners for the sukuk, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arab Bank, Arqaam Capital, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, JP Morgan, Mashreqbank, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank. Several of these, namely ADCB, ADIB, DIB, ENBD Capital, FAB, Mashreq, and Standard Chartered, will also serve as joint global coordinators. Global investor calls commenced on 20 October to facilitate this issuance.

Tender Offer for Existing Certificates

In conjunction with the new sukuk, Arada has launched a tender offer for its outstanding Trust Certificates due in 2027. Holders of these certificates, which represent an aggregate principal amount of $411.7 million from an original $500 million issuance, are invited to tender them for purchase by Arada for cash. The maximum acceptance amount for this offer will be the aggregate amount of the new certificates minus $200 million, subject to Arada's discretion.

Emirates NBD Capital, Mashreqbank, and Standard Chartered Bank are acting as dealer managers for the tender offer. The offer period began on 20 October 2026 and will conclude at 16:00 hours (London time) on 26 October 2026. Following the issuance, the new sukuk is expected to be listed on the International Securities Market and Nasdaq Dubai.