Sobha Realty, the leading global luxury real estate developer, yesterday announced the successful issuance of USD 500 Mn sukuk under its recently established USD 1.5 Bn Sukuk Issuance Program. This latest sukuk will be listed on the London Stock Exchange (LSE) and NASDAQ Dubai.
For this USD 500 Mn 2029 maturity sukuk issuance, the order book was oversubscribed three times to reach USD 1.54 Bn. Initial Price Thoughts (IPTs) were set at 8.375%. However, strong interest from regional and international investors led to a notable price tightening of 37.5 basis points, bringing the effective yield to 8% p.a. Of the total issuance, 61% has been allocated to local and 39% to international investors, respectively, reaffirming investors’ confidence in Sobha Realty’s growth and Dubai’s real estate sector outlook.
Mr. Ravi Menon, Chairman of Sobha Group, said: “The successful completion of Sobha Realty’s USD500 million sukuk issuance underscores the continued confidence of the investor community in our financial stability and strategic direction. Our strategy, underpinned by our Backward Integration model, continues to yield strong financial results, including a substantially healthy revenue backlog, increased topline, and EBITDA generation. This reinforces our long-term commitment to growth and value creation.”
Maturing in 2029, the new sukuk issuance follows the recent upgrade of PNC Investments LLC (PNCI), the parent company of Sobha Realty, by Moody’s rating. In April 2025, Moody’s upgraded PNCI’s rating to Ba2/Stable from Ba3/Stable. In line with the improved existing rating, the newly issued sukuk are expected to achieve Ba2/stable rating by Moody’s and BB/stable rating by S&P.
Sobha Realty appointed Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, J.P. Morgan, Mashreq, RAKBANK, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank as Joint Lead Managers and Joint Bookrunners. Having supported Sobha Realty’s previous issuances, these institutions bring the proven expertise necessary to ensure continued success.
Furthermore, as part of the Sukuk issuance process, Sobha Realty appointed Clifford Chance and Dentons as legal counsels and Grant Thornton as financial auditor, reinforcing its commitment to the highest standards of governance and collaboration with leading institutions.
