Sharjah’s largest real estate developer, Arada Developments, has set a maximum acceptance amount of USD 180 million (AED 661 million) for its tender offer to buy back existing certificates for cash.
The offer was made to holders of Arada Sukuk Limited’s trust certificates due 2027, of which USD 411.7 million (AED 1.511 billion) in principal remains outstanding from an original USD 500 million (AED 1.836 billion) issuance. The maximum acceptance amount equals the aggregate amount of the new certificates less USD 200 million (AED 734 million), and Arada can amend it at its sole discretion until the tender results are announced.
Emirates NBD Capital, Mashreqbank and Standard Chartered Bank are acting as dealer managers on the offer. The tender follows a USD 400 million (AED 1.469 billion) public debt issuance raised earlier this week at a coupon of 8.875%. The company is rated B1 by Moody’s and B+ by Fitch, with both ratings carrying a negative outlook.
Gulf Economist Staff Writer