Page 141 - SOBHA REALTY PR REPORT - SEPTEMBER 2024

9/16/24, 2:23 PM Sobha Realty Complete USD 230 Mn Sukuk Tap, Taking Total Sukuk Holdings To USD 500Mn | Dubai Property Guide
News
Sobha Realty Complete USD 230 Mn Sukuk Tap, Taking Total

Sukuk Holdings To USD 500Mn

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 ledto 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.
SobhaRealty 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.

https://dubaipropertyguide.io/sobha-realty-complete-usd-230-mn-sukuk-tap-taking-total-sukuk-holdings-to-usd-500mn/ 2/2