Page 160 - SOBHA REALTY PR REPORT - SEPTEMBER 2024

9/13/24, 1:24 PM Sobha Realty Complete USD 230 Mn Sukuk Tap, taking total Sukuk Holdings to USD 500 Mn - Middle East Business News and Inf…
Sobha Realty Complete USD 230 Mn

Sukuk Tap, taking total Sukuk Holdings

to USD 500 Mn

September 12, 2024 8

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 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.

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