Page 134 - SOBHA REALTY PR REPORT - SEPTEMBER 2024

9/16/24, 2:21 PM Dubai: Sobha Realty completes $230 million Sukuk tap

With the completion of this tap, Sobha Realty’s total sukuk issuance now reaches a benchmark size of

$500 million. The tap adheres to the existing sukuk terms, preserving the favourable 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.

tanvir@dubainewsweek.com

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