Ciaran Bohnacker
Partner
Dubai
The transaction comprised the update and upsize of Arada Sukuk 2 Limited’s Trust Certificate Issuance Programme from US$1bn to US$1.5bn, a new US$400m sukuk issuance under the updated programme, together with a consent solicitation and tender offer relating to Arada Sukuk Limited’s outstanding trust certificates due 2027.
The five-year senior unsecured sukuk carries a fixed profit rate of 8.875% and is listed on the London Stock Exchange and Nasdaq Dubai. It attracted strong demand from regional and international investors, with an order book exceeding US$700m.
The issuance is understood to be the first public debt offering by a UAE real estate developer since the onset of the regional conflict in February 2026, marking an important step in the reopening of international debt capital markets for the sector.
As part of the wider liability management exercise, we also advised on a successful consent solicitation in respect of Arada Sukuk Limited’s outstanding trust certificates due 2027. This secured certificate holder approval for amendments to the existing sukuk documentation. A subsequent cash tender offer resulted in Arada accepting approximately US$169m of existing certificates for repurchase.
Together, the transactions form part of Arada’s broader strategy to proactively manage its capital structure and debt maturity profile.
Our Dubai legal team was led by partner Ciaran Bohnacker and senior counsel Szymon Durlo, who advised on the Cayman Islands law aspects of the transactions. They worked alongside the Walkers Professional Services (WPS) team, led by senior vice president Paul McGinness, which provided fiduciary and administrative support.
The transaction builds on our longstanding relationship with Arada, having previously advised on the establishment of its sukuk programme in 2024 and subsequent issuances.
Commenting on the transaction, Ciaran Bohnacker, Partner in our Dubai office, said: 'We are delighted to have supported Arada on another significant transaction. Its successful return to the international debt capital markets, against a backdrop of heightened regional uncertainty, is an encouraging development for the UAE real estate sector. This transaction demonstrates how our integrated legal and professional services teams can support clients across complex financing transactions. We are pleased to continue supporting Arada as its financing requirements evolve.'
Szymon Durlo, Senior Counsel in our Dubai office, added: 'This brought together several interconnected workstreams across two Cayman Islands issuers, combining a programme upsize and new sukuk issuance with a consent solicitation and tender offer. It demonstrates the important role Cayman Islands structures continue to play in facilitating cross-border Islamic finance and liability management transactions. It was a pleasure to support Arada throughout this process.'
