Arada Secures $100 Million Sustainability-Linked Financing from First Abu Dhabi Bank

Arada has secured its first sustainability-linked financing facility worth $100 million from First Abu Dhabi Bank, backed by Italy’s export credit agency SACE, reinforcing the developer’s commitment to sustainable growth, green construction, and international collaboration.

Key Highlights

• Arada signed a $100 million sustainability-linked financing facility
• The financing was provided by First Abu Dhabi Bank
• The facility is backed by SACE
• The agreement represents Arada’s first sustainability-linked financing transaction
• The financing facility has been structured as a five-year Islamic financing arrangement
• Funds will support general corporate operations and ongoing project development activities
• The financing aligns with Arada’s Sustainability Performance Targets (SPTs)
• Sustainability targets will be monitored annually throughout the duration of the facility
• The initiative supports Arada’s strategy to expand green investment and sustainable construction practices
• The company aims to reduce its carbon footprint through the use of sustainable building materials
• The financing framework also supports stronger environmental awareness among suppliers and contractors
• Arada plans to continue integrating LEED and WELL certifications into future developments
• The agreement also supports enhanced health and safety standards across current and future projects
• SACE identified Arada as a strategic partner for Italian businesses operating in the UAE
• Arada previously partnered with The Armani Group on the Armani Beach Residences project at Palm Jumeirah
• The Armani partnership is expected to generate up to AED250 million in luxury Italian furnishing imports into the UAE over five years
• Since 2022, Arada has raised more than $1.5 billion through Sukuk issuances in international debt markets
• The company secured favourable ratings from Moody’s and Fitch Ratings in 2022
• Since launching in 2017, Arada has introduced 11 successful projects across the UAE
• The developer has also expanded operations into the UK and Australia markets
• Arada’s global development pipeline is valued at AED130 billion
• The pipeline includes approximately 55,000 residential units worldwide
• The company has successfully delivered 15,000 homes to date