Latest news with #Fitch
Gulf Today
9 hours ago
- Business
- Gulf Today
Arada completes issuance of $450 million Sukuk
Arada Developments, rated B1 by Moody's and B+ by Fitch, has successfully completed the issuance of a $450 million Sukuk, which has been listed on the London Stock Exchange and the Nasdaq Dubai. The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150 per cent, tightening 47.5bps- 60bps from the initial price guidance of 7.625 per cent-7.750 per cent for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to US$100 million on Arada's existing Sukuk maturing 2027, with the balance for general corporate purposes. The Sukuk issuance saw strong demand 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. Prince Khaled Bin Alwaleed Bin Talal, Executive Vice Chairman of Arada, said, "Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the Sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over DhsD90 billion. In total, Arada has sold over 17,000 units since inception, valued at over Dhs29 billion, with over 10,000 units completed. WAM
Khaleej Times
11 hours ago
- Business
- Khaleej Times
Arada returns to debt markets with successful closure of $450 million sukuk
Arada Developments, rated B1 by Moody's and B+ by Fitch, has successfully completed the issuance of a $450 million sukuk, which has been listed on the London Stock Exchange and the Nasdaq Dubai. The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150%, tightening 47.5bps- 60bps from the initial price guidance of 7.625%-7.750% for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to $100 million on Arada's existing sukuk maturing 2027, with the balance for general corporate purposes. The sukuk issuance saw strong demand 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. Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, said: 'Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The joint global coordinators for the sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over Dh90 billion. In total, Arada has sold over 17,000 units since inception, valued at over Dh29 billion, with over 10,000 units completed.
Free Malaysia Today
12 hours ago
- Business
- Free Malaysia Today
Rating firms say US tariffs alone will not trigger EU sovereign downgrades
At a sector level, Moody's warned that 'the credit effects will be significant' for companies that export a lot to the US. (EPA Images pic) LONDON : The sharp increase in US trade tariffs on the EU will not trigger immediate sovereign rating cuts, but could compound existing pressures, Fitch and other agencies said today, while Moody's warned of the effect on exporting firms. One of Fitch's top sovereign analysts, Ed Parker, said the US' baseline tariff of 15% on imports from the EU was in line with assumptions the rating agency has had since March and therefore did not materially shift its economic forecasts. 'Nevertheless, the 15% rate is a huge increase relative to the 1.2% rate of last year,' he said. 'We don't expect the increase in the tariff rate to directly drive EU rating changes on its own, but it could compound existing credit pressures,' Parker told Reuters. Smaller European-based agency Scope Ratings and Morningstar DBRS echoed the view, with Scope's head of sovereign ratings, Alvise Lennkh-Yunus, saying the tariffs arrived 'against a backdrop of accumulating economic shocks'. At a sector level, Moody's warned that 'the credit effects will be significant' for companies that export a lot to the US, depend on complex global supply chains and have limited pricing power in their markets. That includes carmakers like Stellantis and Volkswagen, whose ratings Moody's recently downgraded. Large diversified European manufacturing companies like Siemens and ABB generate about 25% of their revenue in the US. However, they tend to follow local-for-local strategies, sourcing at least 80% of their procurement within the US and should be able to pass at least some of the tariff increases on to customers. Uncertainty still remains about key goods such as semiconductors and pharmaceuticals. The pharmaceutical sector amounts to 25% of all EU exports to the US, analysts estimate. The exemption of aircraft components meanwhile eases expected tariff-related pressures for Airbus and MTU Aero Engines, 'which reinforces our already positive outlook for the global aerospace and defence sector,' Moody's said. It also said the 15% rate had been broadly in line with expectations it laid out when it cut its euro zone economic growth forecast for the year to below 1% in May. It did not give an EU-wide sovereign view, although it said Ireland, which it rates at Aa3 and has a 'positive' outlook on, was most exposed with total value-added exports to the US accounting for around 8% of its GDP back in 2020.
Sharjah 24
12 hours ago
- Business
- Sharjah 24
Arada completes closure of 4 times-oversubscribed $450 mn Sukuk
The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150%, tightening 47.5bps- 60bps from the initial price guidance of 7.625%-7.750% for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to US$100 million on Arada's existing Sukuk maturing 2027, with the balance for general corporate purposes. The Sukuk issuance saw strong demand from both regional and international investors with a subscription order book peaking above US$2 billion (excluding Joint Lead Managers), equivalent to over four times the offer size. Prince Khaled bin Alwaleed bin Talal, Executive Vice Chairman of Arada, said, 'Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the Sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over AED90 billion. In total, Arada has sold over 17,000 units since inception, valued at over AED29 billion, with over 10,000 units completed.
Business Times
13 hours ago
- Business
- Business Times
Rating firms say US tariffs alone will not trigger EU sovereign downgrades
[LONDON] The sharp increase in US trade tariffs on the European Union will not trigger immediate sovereign rating cuts, but could compound existing pressures, Fitch and other agencies said on Tuesday (Jul 29), while Moody's warned of the effect on exporting firms. One of Fitch's top sovereign analysts, Ed Parker, said the US' baseline tariff of 15 per cent on imports from the EU was in line with assumptions the rating agency has had since March and therefore did not materially shift its economic forecasts. Nevertheless, the 15 per cent rate is a huge increase relative to the 1.2 per cent rate of last year, he said. 'We don't expect the increase in the tariff rate to directly drive EU rating changes on its own, but it could compound existing credit pressures,' Parker told Reuters. Smaller European-based agency Scope Ratings and Morningstar DBRS echoed the view, with Scope's head of sovereign ratings, Alvise Lennkh-Yunus, saying the tariffs arrived 'against a backdrop of accumulating economic shocks'. At a sector level, Moody's warned that 'the credit effects will be significant' for companies that export a lot to the US, depend on complex global supply chains and have limited pricing power in their markets. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up That includes carmakers like Stellantis and Volkswagen, whose ratings Moody's recently downgraded. Large diversified European manufacturing companies like Siemens and ABB generate about 25 per cent of their revenue in the US. But they tend to follow local-for-local strategies, sourcing at least 80 per cent of their procurement within the US and should be able to pass at least some of the tariff increases on to customers. Uncertainty still remains about key goods such as semiconductors and pharmaceuticals. The pharmaceutical sector amounts to 25 per cent of all EU exports to the US, analysts estimate. The exemption of aircraft components meanwhile eases expected tariff-related pressures for Airbus and MTU Aero Engines, 'which reinforces our already positive outlook for the global aerospace and defence sector,' Moody's said. It also said the 15 per cent rate had been broadly in line with expectations it laid out when it cut its eurozone economic growth forecast for the year to below 1 per cent in May. It did not give an EU-wide sovereign view, although it said Ireland, which it rates at Aa3 and has a 'positive' outlook on, was most exposed with total value-added exports to the US accounting for around 8 per cent of its GDP back in 2020. REUTERS
