Sobha Realty, a prominent global luxury real estate developer, successfully expanded its sukuk holdings by completing a USD 230 million tap on its existing sukuk on September 10, 2024. This tap extends Sobha Realty’s inaugural sukuk issuance, initially valued at USD 300 million in July 2023, and brings the total sukuk issuance to USD 500 million. The sukuk is listed on both the London Stock Exchange (LSE) and NASDAQ Dubai, maintaining its favorable conditions for investors.
The strong demand for Sobha Realty’s sukuk, driven by regional and international interest, led to a significant price tightening of 95 basis points. Notably, 25% of the investor interest came from global sources, underscoring confidence in Sobha’s financial instruments.
The transaction was managed by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Sharjah Islamic Bank, and Standard Chartered Bank, acting as Joint Global Coordinators, Joint Lead Managers, and Bookrunners. Clifford Chance and Dentons provided critical legal counsel, while Grant Thornton ensured transparency as auditors.
This announcement comes after recent credit rating upgrades from leading agencies. Standard & Poor’s upgraded Sobha Realty’s rating to BB/Stable from BB-/Positive, and Moody’s raised its sukuk rating to Ba2/Stable from Ba3/Stable. These upgrades are a result of Sobha Realty’s strong financial performance, including growth in EBITDA, increased revenue backlog, and improved margins.
Company remains confident that this move will enhance its financial strength and further build trust with stakeholders.
About Sobha Realty
Founded in 1976 by PNC Menon, Sobha Realty has become a key player in global luxury real estate development. The company, known for its flagship Sobha Hartland community, continues to expand with prominent projects across the UAE and beyond.
The company’s successful USD 230 million sukuk tap reinforces its strategic growth, strengthening investor confidence while providing increased financial stability to support future developments and expansion in luxury real estate markets.
