Latest news with #sukuk
Zawya
a day ago
- Business
- Zawya
Sharjah developer Arada tightens price on $450mln sukuk offering
Arada Developments, rated B1 by Moody's and B+ by Fitch, has launched its $450 million sukuk with a coupon of 7.150%, tightening from the initial price guidance of 7.625%-7.750% for a spread of 317.3 basis points over US Treasuries. Proceeds of the five-year fixed rate Reg S Sukuk issuance will be used for a tender offer of up to $100 million on Arada's existing sukuk maturing 2027, with the balance deployed for general corporate purposes. Demand came 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. The sukuk has been listed on the London Stock Exchange and the Nasdaq Dubai and will fall under Arada Sukuk 2 Limited's $1 billion Trust Certificate Issuance Programme. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank have been tapped as joint global coordinators, while Arab Bank, Arqaam Capital, Bank ABC, RAKBANK, Sharjah Islamic Bank and Warba Bank, were appointed joint lead managers and bookrunners on the issuance. Arada last raised debt in September 2024, issuing a $150 million tap on its $400 million sukuk maturing in June 2029. The company has one other outstanding bond, a $500 million 8.125% sukuk due in June 2027. Arada, which is Sharjah's largest property developer, is jointly owned by Sheikh Sultan bin Ahmed Al Qasimi, the Deputy Ruler of the Sharjah and Prince Khalid Bin Alwaleed Bin Talal Alsaud, a member of the royal family of the Saudi Arabia. The issuance by Arada is the latest in a growing number of property developers tapping debt markets to capitalise on a construction boom in the GCC. In recent months, several developers including Omniyat, Damac, and the Abu-Dhabi based Aldar Investment Properties have tapped debt markets with sukuk issuances. (Writing by Bindu Rai, editing by Brinda Darasha)
Zawya
a day ago
- Business
- Zawya
UAE and Saudi Arabia cement Gulf's dominance in Global ESG sukuk market in H1
Gulf nations dominated global environmental, social, and governance (ESG) sukuk activity in the first half of 2025, accounting for over 50% of total issuances, according to a new report by Fitch Ratings. Saudi Arabia and the UAE were the primary drivers of this growth. Globally, outstanding ESG sukuk rose more than 12% year-on-year to reach the equivalent of $50 billion in the first six months of 2025, the rating agency said. Nasdaq Dubai emerged as a key hub for US dollar-denominated ESG sukuk listings, alongside European exchanges such as Frankfurt, London, and Stuttgart. The issuer base increased in the second quarter of 2025, with UAE-headquartered Omniyat Holdings issuing the first green sukuk, rated 'BB-'. The period also saw Saudi Arabia issuing new guidelines for green, social, and sustainability-linked debt instruments. Fitch expects ESG sukuk issuance to moderate in the third quarter of 2025 due to seasonal summer trends in key markets, before rebounding in the last quarter of the year. The global ESG sukuk is likely to surpass $60 billion outstanding by the end of 2026. However, geopolitical risks, evolving Sharia requirements, oil price volatility, and greenwashing concerns are likely to slow ESG sukuk issuance, the report said. Fitch rates about three quarters of the global dollar ESG sukuk market, almost all of which is senior unsecured, and about 1% subordinated.
Zawya
18-07-2025
- Business
- Zawya
UAE developer Arada seeks $500mln Islamic bond as construction booms
United Arab Emirates property firm Arada Developments is seeking up to $500 million from an Islamic bond, or sukuk, two sources familiar with the matter said, as it joins other property firms tapping debt markets amid a construction boom in the Gulf state. Sharjah-based Arada would join a slew of Gulf property firms to issue bonds this year, which have tapped debt markets for financing needs and to capitalise on a real estate boom as Gulf countries accelerate economic diversification strategies. Arada plans to launch the bond next week and use funds from the debt sale to acquire new land, the sources said, declining to be named because they were not authorised to speak publicly. The plan was not yet finalised, they said. A spokesperson for Arada did not respond to a Reuters request for comment. Arada last tapped debt markets in September for a $150 million tap of its $400 million sukuk due 2029 which attracted strong demand and offered a yield of more than 7%. In the Middle East and North Africa, issuers raised a record $32.2 billion through sukuk in the six months to June 30, according to LSEG data, defying tariff uncertainty, geopolitical tensions and volatile oil prices. Regional developers which have raised Islamic debt this year include Dubai's Sobha Realty and Omniyat, both raising $500 million in May. Arada was established in 2017 by Sharjah's deputy ruler, Sheikh Sultan bin Ahmed AlQasimi and Prince Khaled bin Alwaleed bin Talal AlSaud, the son of Saudi billionaire Prince Alwaleed Bin Talal. It has projects and assets in its home country, and expects to launch sales and construction in Australia by the end of 2025. The company posted total revenue of $1.1 billion last year, up around 40% from 2023, according to a company presentation. (Reporting by Hadeel Al Sayegh and Federico Maccioni; Editing by Anousha Sakoui and Rachna Uppal)
Zawya
16-07-2025
- Business
- Zawya
Saudi Arabia completes July sukuk issuance with $1.33bln allocation
RIYADH — The National Debt Management Center (NDMC) announced the completion of the July 2025 issuance under the Saudi government's riyal-denominated sukuk program, with a total allocation of SR5.020 billion. According to the NDMC, the issuance was divided into four tranches. The first tranche amounted to SR776 million, maturing in 2029. The second tranche was SR1.340 billion, set to mature in 2032. The third tranche reached SR823 million, maturing in 2036, while the fourth tranche totaled SR2.081 billion, with maturity in 2039. This issuance is part of the Kingdom's ongoing efforts to strengthen the local debt market and support fiscal sustainability. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
16-07-2025
- Business
- Zawya
Indonesia launches 5-year US dollar Islamic bond, 10-year green sukuk, term sheet shows
SINGAPORE/JAKARTA: Indonesia has launched a five-year U.S. dollar-denominated Islamic bond, or sukuk, with an initial price guidance of 4.85%, along with a 10-year green sukuk at 5.5%, according to a term sheet reviewed by Reuters on Wednesday. The document does not specify the size of the issuance, and the Indonesian government has not yet provided an official comment. The sukuk bonds are being issued by Perusahaan Penerbit SBSN Indonesia III, with the Indonesian government acting as the obligor, according to the sheet, which added that they will be listed on both the Singapore Exchange and Nasdaq Dubai. The bonds will hold credit ratings in line with the sovereign ratings of Indonesia, Southeast Asia's largest economy, at Baa2 by Moody's, BBB by S&P and BBB by Fitch. Indonesia will use the proceeds to meet part of its general financing requirements, with proceeds from the 10-year green sukuk going to finance or re-finance eligible green expenditures, according to the document. Deutsche Bank and HSBC are the joint green structuring coordinators. Bank of America, Deutsche Bank, Dubai Islamic Bank , HSBC and Mandiri Securities are the bookrunners, while BRI Danareksa Sekuritas and Trimegah Sekuritas Indonesia are the co-managers, the sheet showed. (Reporting by Yantoultra Ngui in Singapore and Stefanno Sulaiman in Jakarta; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips)
