Arada Developments set to raise $350 mln with debut sukuk | Reuters

Arada Developments set to raise $350 mln with debut sukuk | Reuters

Arada Developments, the largest developer in Sharjah in the United Arab Emirates, was set to raise $350 million in its debut foray in the debt markets, a document showed on Tuesday.

The yield was set at 8.125%, tightening from initial price guidance of around 8.25%. The Islamic bonds, or sukuk, received more than $720 million in orders, including $185 million in interest from joint lead managers, the document from one of the banks on the deal showed.

The company had said the sukuk would be of benchmark size, which usually means at least $500 million.

The issuance is the first public dollar bond sale out of the Gulf since late March, when the Sharjah government raised $750 million, also with sukuk.

The region has seen a dearth of bond sales this year amid enduring market volatility and as many issuers turn to loans.

Arada is 40% owned by Basma Group, which is owned by Sharjah's deputy ruler, and 60% by Corp KBW Investments, which is owned by Prince Khaled bin Alwaleed bin Talal Al Saud, a member of the Saudi royal family.