Dubai – Sobha Realty, a leading global luxury real estate developer, announces the successful execution of a strategic tap into its existing sukuk on Tuesday, September 10, 2024. This latest tap is an extension of the Developer’s inaugural sukuk issuance of USD 300 million, which took place in July 2023 and currently has an outstanding balance of USD 270 million. This sukuk was listed on both the London Stock Exchange (LSE) and NASDAQ Dubai.

With the completion of this tap, Sobha Realty’s total sukuk issuance now reaches a benchmark size of USD 500 million. The tap adheres to the existing sukuk terms, preserving the favorable conditions and ensuring continued stability for the company’s valued investors.

The significant interest in Sobha Realty’s sukuk led to a notable price tightening of 95 basis points, highlighting strong demand from both regional and international investors. Approximately 25% of the interest comes from global sources, reflecting strong confidence in Sobha Realty’s financial instruments.

Sobha Realty appointed Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Sharjah Islamic Bank, and Standard Chartered Bank as Joint Global Coordinators, Joint Lead Managers, and Bookrunners for this transaction. Their expertise and commitment have been instrumental to its success.

The company also acknowledges Clifford Chance and Dentons for their exceptional legal counsel, which provided critical guidance throughout the transaction. Additionally, Grant Thornton’s role as auditors was pivotal in ensuring the integrity and transparency of the process.

This announcement follows recent upgrades from leading credit rating agencies. Standard & Poor’s has upgraded our rating from BB-/Positive to BB/Stable, while Moody’s has upgraded our sukuk rating from Ba3/stable to Ba2/stable. These upgrades reflect our strong financial results, including substantial EBITDA growth, a larger revenue backlog, and improved EBITDA margins.

Sobha Realty is confident this strategic move will further fortify its financial position and reinforce trust with its stakeholders.

About Sobha Realty

Sobha Realty is an international luxury developer committed to redefining the art of living through sustainable communities. Established in 1976 as an interior decoration firm in Oman by PNC Menon – a visionary entrepreneur – the company has grown its presence with developments and investments in the UAE, Oman, and India. For nearly five decades, Sobha Realty has been redefining the real estate value chain through ‘Backward Integration’ by leveraging its inherent in-house capabilities of conceptualisation, design, and development. Today, the firm has developed into one of the most prominent and premium real estate developers in the UAE and aims to become a global real estate developer with its essence, the ‘Art of the Detail,’ remaining deeply embedded in the organisation’s DNA. With a proven track record of delivering projects ahead of schedule, the company has eleven masterplans across the UAE and is continually expanding its presence in the city with a number of other prominent projects. The flagship community of Sobha Realty (Sobha Hartland) is a thriving community that is home to over 11,000 residents.

Sobha Siniya Island, Sobha Realty's masterplan and it’s very first-ever luxury island project, features luxury villas, mansions, and resorts in a serene island setting.

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