Construction Sharjah developer hires banks to debut dollar sukuk By Reuters May 24, 2022 Creative Commons Arada is 40 percent owned by Basma Group, which is owned by Sharjah's deputy ruler, and 60 percent by Corp KBW Investments, which is owned by Prince Khaled bin Alwaleed bin Talal Al Saud, a member of the Saudi royal family. Arada Developments, the largest developer in the United Arab Emirate of Sharjah, has hired banks to arrange a debut sale of US dollar-denominated Islamic bonds, sukuk. The deal could be the first dollar bond sale out of the Gulf since late March, when the Sharjah government raised $750 million, also with sharia-compliant sukuk. The region has seen a dearth of bond sales this year amid enduring market volatility and as many issuers turn to loans. Dubai Islamic Bank Emirates NBD Capital and Standard Chartered Bank were hired as joint global coordinators. They are joined by Abu Dhabi Commercial Bank, Ajman Bank, Al Rajhi Capital, Kamco Invest, Mashreq, Sharjah Islamic Bank and Warba Bank as joint lead managers and bookrunners. They will hold investor calls until next Monday, which will be followed by the issuance of benchmark size five-year sukuk, subject to market conditions. The Dubai-neighbouring emirate’s largest real estate developer, set up in 2017, is 40 percent owned by Basma Group, which is owned by Sheikh Sultan bin Ahmed Al Qasimi, Sharjah’s deputy ruler, and 60 percent held by Corp KBW Investments, which is owned by Prince Khaled bin Alwaleed bin Talal Al Saud, a member of the Saudi royal family. “The Sharjah government provided a guarantee for up to $436 million loan that Arada obtained for the Aljada land payment,” Arada said, adding it has “access to premium land allotment with flexible payment plans”. Aljada, the largest integrated development in the emirate, said it can repay the loan over 16 years from project cash flows. At the end of 2021, Arada had $251 million in debt, of which $118.68 million matures this year, and $128 million in cash. A further $84.11 million in debt matures next year. The company said it had a 70 percent market share of off-plan sales in Sharjah last year, up from 63 percent in 2020.