Sobha Realty Successfully Completes USD 230 Mn Sukuk Tap, Taking Total Sukuk Holdings to USD 500 Mn

Sobha Realty, a global leader in luxury real estate development, has successfully completed a USD 230 million sukuk tap on September 10, 2024. This move extends the developer’s initial sukuk issuance of USD 300 million in July 2023, bringing its total sukuk holdings to USD 500 million. The sukuk is listed on both the London Stock Exchange (LSE) and NASDAQ Dubai.

This latest transaction, conducted under the same terms as the original sukuk, highlights continued strong demand from investors, resulting in a price tightening of 95 basis points. Sobha Realty’s sukuk has attracted approximately 25% of its interest from global investors, showcasing international confidence in the company’s financial instruments.

Key financial institutions, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Sharjah Islamic Bank, and Standard Chartered Bank, were appointed as Joint Global Coordinators, Lead Managers, and Bookrunners for the transaction. Legal counsel was provided by Clifford Chance and Dentons, while Grant Thornton served as the auditing firm.

Sobha Realty’s strong financial position has been further affirmed by recent credit rating upgrades. Standard & Poor’s raised the company’s rating to BB/Stable, and Moody’s upgraded its sukuk rating to Ba2/Stable, citing EBITDA growth and improved financial margins.

This successful sukuk tap marks a significant step in strengthening Sobha Realty’s financial foundation, reinforcing trust with stakeholders and investors alike.