Page 135 - SOBHA REALTY PR REPORT - SEPTEMBER 2024

Sobha Realty completes US$230 mn sukuk tap, taking total sukuk holdings to US$500 mn

September 13, 2024
Dubai, UAE

Sobha Realty, a leading global luxury real estate developer, has announced 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 US$300 million (Dh1.1 billion), which
took place in July 2023 and currently has an outstanding balance of US$270 million (Dh991 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 US$500 million (Dh1.84 billion). 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
percent 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 Sobha Realty’s sukuk rating from BB-/Positive to BB/Stable, while Moody’s has
upgraded the developer’s sukuk rating from Ba3/stable to Ba2/stable. These upgrades reflect the
company’s strong financial results, including substantial earnings before interest, taxes,
depreciation, and amortization (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.

https://gulfproperty.media/sobha-realty-completes-us230-mn-sukuk-tap-taking-total-sukuk-
holdings-to-us500-mn/