Page 143 - SOBHA REALTY PR REPORT - SEPTEMBER 2024

9/16/24, 2:23 PM Sobha Realty taps into existing sukuk; total issuance reaches $500m

Sobha Realty taps into existing sukuk; total issuance

reaches $500m

DUBAI

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A Sobha Realty office

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

Sobha Realty’s total sukuk issuance now reaches a benchmark size of $500 million. The tap adheres to the existing sukuk terms.

Price tightening
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.

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.

Clifford Chance and Dentons provided legal counsel for the process, while Grant Thornton served as auditor.

The sukuk tap announcement follows recent upgrades from credit rating agencies. S&P improved Sobha’s rating from
BB-/Positive to BB/Stable, while Moody’s revised the sukuk’s credit rating from Ba3/stable to Ba2/stable.--TradeArabia News

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