Latest news with #Sukuk
Gulf Today
6 hours ago
- Business
- Gulf Today
Arada completes issuance of $450 million Sukuk
Arada Developments, rated B1 by Moody's and B+ by Fitch, has successfully completed the issuance of a $450 million Sukuk, which has been listed on the London Stock Exchange and the Nasdaq Dubai. The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150 per cent, tightening 47.5bps- 60bps from the initial price guidance of 7.625 per cent-7.750 per cent for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to US$100 million on Arada's existing Sukuk maturing 2027, with the balance for general corporate purposes. The Sukuk issuance saw strong demand from both regional and international investors with a subscription order book peaking above $2 billion (excluding Joint Lead Managers), equivalent to over four times the offer size. Prince Khaled Bin Alwaleed Bin Talal, Executive Vice Chairman of Arada, said, "Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the Sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over DhsD90 billion. In total, Arada has sold over 17,000 units since inception, valued at over Dhs29 billion, with over 10,000 units completed. WAM
Sharjah 24
10 hours ago
- Business
- Sharjah 24
Arada completes closure of 4 times-oversubscribed $450 mn Sukuk
The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150%, tightening 47.5bps- 60bps from the initial price guidance of 7.625%-7.750% for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to US$100 million on Arada's existing Sukuk maturing 2027, with the balance for general corporate purposes. The Sukuk issuance saw strong demand from both regional and international investors with a subscription order book peaking above US$2 billion (excluding Joint Lead Managers), equivalent to over four times the offer size. Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, said, 'Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the Sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over AED90 billion. In total, Arada has sold over 17,000 units since inception, valued at over AED29 billion, with over 10,000 units completed.
Zawya
11 hours ago
- Business
- Zawya
Arada completes successful closure of 4 times-oversubscribed $450mln sukuk
SHARJAH - Arada Developments LLC, rated B1 by Moody's and B+ by Fitch, has successfully completed the issuance of a US$450 million Sukuk, which has been listed on the London Stock Exchange and the Nasdaq Dubai. The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150%, tightening 47.5bps- 60bps from the initial price guidance of 7.625%-7.750% for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to US$100 million on Arada's existing Sukuk maturing 2027, with the balance for general corporate purposes. The Sukuk issuance saw strong demand from both regional and international investors with a subscription order book peaking above US$2 billion (excluding Joint Lead Managers), equivalent to over four times the offer size. HRH Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, said, 'Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the Sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over AED90 billion. In total, Arada has sold over 17,000 units since inception, valued at over AED29 billion, with over 10,000 units completed.
Gulf Business
14 hours ago
- Business
- Gulf Business
Arada raises $450m in oversubscribed sukuk issuance
Image: Getty Images/ For illustrative purposes The RegS Sukuk, priced with a fixed coupon of 7.150 per cent, drew peak orders exceeding $2bn, excluding joint lead managers. The transaction priced 47.5 to 60 basis points tighter than initial guidance of 7.625 to 7.750 per cent, landing at a spread of 317 bps over US Treasuries. The paper is rated BB- by Fitch and B1 by Moody's and has been listed on both the London Stock Exchange and Nasdaq Dubai. Proceeds from the issuance will partly fund a tender offer of up to $100m for Arada's outstanding 2027 Sukuk, with the remainder earmarked for general corporate purposes. Arada sukuk attracts interest for investors in Europe, Middle East and Asia Prince Khaled bin Alwaleed bin Talal, executive VC of Arada, said the strong investor response was a vote of confidence in the company's performance and future prospects. 'Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects,' he said. The sukuk attracted broad investor interest across Europe, the Middle East and Asia, with participation from banks, private banks, asset managers, hedge funds and other institutional investors. Joint global coordinators for the transaction were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered. Joint Lead Managers and Bookrunners included Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank. Arada, which launched operations in 2017, has delivered over 10,000 units to date and sold more than 17,000 homes valued at Dhs29bn. Its project pipeline spans the UAE and Australia, with a total value exceeding Dhs90bn. Read:
Business Recorder
7 days ago
- Business
- Business Recorder
BMR initiative to spur SPL business revival
KARACHI: Sitara Peroxide Limited (SPL), the Faisalabad-based chemical manufacturer, continues to battle financial headwinds, posting a net loss of Rs 76.37 million in the half year ended December 31, 2023. However, the company's management remains cautiously optimistic about its future, banking heavily on a comprehensive Balancing, Modernization, and Replacement (BMR) initiative aimed at transforming the struggling enterprise into a viable and efficient operation. As per the company's correspondence to Pakistan Stock Exchange in its Half Yearly Report of 2023, SPL's financials reveal a sharp decline in net sales, plummeting to just Rs 14.9 million during the half-year, compared to Rs 385.7 million in the same period a year earlier. The drastic fall is primarily attributed to the plant's shutdown, which has remained non-operational since June 12, 2023. Despite this, the company managed to narrow its losses from Rs 220 million last year to Rs 76.37 million, aided by reduced depreciation and a one-time gain of Rs 84.8 million from the sale of non-current assets. The gross loss stood at Rs 77.5 million, slightly improved from Rs 112.8 million a year ago. The loss per share also shrank from Rs 3.99 to Rs 1.39. However, liquidity pressures persist—current liabilities exceed current assets by an staggering Rs 834 million, and the firm remains unable to meet debt obligations on time. In a bid to reverse the fortunes, SPL has pinned its revival strategy on a multi-pronged BMR (balancing, modernization and replacement) initiative, which includes a transition to modern slurry bed catalyst technology from the outdated fixed bed system. This upgrade is projected to enhance annual production capacity from 30,000 to 40,000 tons, improve yield efficiency, and significantly reduce costs. The company has already entered negotiations with international technology and equipment suppliers and made initial advance payments to that effect. SPL CEO Imran Ghafoor stated that the management aims to 'make the company debt-free and competitive in the long run,' while acknowledging the current economic uncertainties. He also disclosed a rescheduling of a Rs 167 million Sukuk facility, with Rs 296.7 million in accrued markup potentially being waived—conditional upon timely payments under new terms. To finance the BMR, the sponsors plan to inject Rs 355 million by selling assets from an associated company, in addition to seeking fresh bank loans. The management emphasizes that resuming operations under the current obsolete setup, combined with high RLNG and power tariffs would lead to 'unsustainable operational losses.' Therefore, the transition through BMR is being pursued not only as a revival strategy but as an existential necessity. Despite its current struggles, the board has reaffirmed its commitment to long-term sustainability, thanking stakeholders for their continued patience. Copyright Business Recorder, 2025
