Sobha Realty has issued a $750 million Green Sukuk, marking the largest in its history and the biggest such issuance ever by a real estate developer worldwide.
The five-year Islamic bond forms part of the company’s $1.5 billion Trust Certificate Issuance Programme and will be listed on both the London Stock Exchange and Nasdaq Dubai. Strong appetite from investors pushed total orders to around $2.1 billion—2.8 times the offer size—allowing pricing to tighten by 50 basis points from initial guidance.
The Sukuk was priced at a profit rate of 7.125 percent annually, delivering an effective yield of 7.375 percent. Regional investors accounted for 56 percent of allocations, while the remaining 44 percent went to global participants.
Financing Sustainable Projects
Proceeds will be directed toward financing or refinancing eligible projects under Sobha Realty’s Green Financing Framework. The framework aligns with globally recognised standards such as the ICMA Green Bond Principles and the LMA Green Loan Principles. Independent verification was provided by DNV, confirming compliance with best market practices.
The Sukuk is expected to receive credit ratings of Ba2 (Stable) from Moody’s and BB (Stable) from S&P, consistent with the ratings of the obligor, PNC Investments LLC.
Consortium of Global Banks
The issuance brought together a consortium of regional and international institutions. Dubai Islamic Bank, Emirates NBD Capital, J.P. Morgan Securities, Mashreqbank, and Standard Chartered acted as Joint Global Coordinators. They were supported by 13 Joint Lead Managers and Bookrunners, including First Abu Dhabi Bank, Deutsche Bank, and Abu Dhabi Commercial Bank. Deutsche Bank and Emirates NBD Capital also served as Joint ESG Structuring Coordinators.
Clifford Chance and Dentons provided legal counsel, Grant Thornton acted as auditor, while the strong order book underscored investor confidence in both Sobha Realty’s growth trajectory and the rising momentum of sustainable finance in the Middle East.
