Page 173 - SOBHA REALTY PR REPORT - SEPTEMBER 2024

9/13/24, 4:13 PM Sobha Realty Expands Sukuk to USD 500M

Sobha Realty Expands Sukuk to USD 500M

SEPTEMBER 13, 2024

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Sobha Realty, a prominent global luxury real estate developer, successfully expanded its sukuk
holdings by completing a USD 230 million tap on its existing sukuk on September 10, 2024. This
tap extends Sobha Realty’s inaugural sukuk issuance, initially valued at USD 300 million in July
2023, and brings the total sukuk issuance to USD 500 million. The sukuk is listed on both the
London Stock Exchange (LSE) and NASDAQ Dubai, maintaining its favorable conditions for
investors.
The strong demand for Sobha Realty’s sukuk, driven by regional and international interest, led to
a significant price tightening of 95 basis points. Notably, 25% of the investor interest came from
global sources, underscoring confidence in Sobha’s financial instruments.
The transaction was managed by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai
Islamic Bank, Emirates NBD Capital, Sharjah Islamic Bank, and Standard Chartered Bank, acting
as Joint Global Coordinators, Joint Lead Managers, and Bookrunners. Clifford Chance and
Dentons provided critical legal counsel, while Grant Thornton ensured transparency as auditors.
This announcement comes after recent credit rating upgrades from leading agencies. Standard
& Poor’s upgraded Sobha Realty’s rating to BB/Stable from BB-/Positive, and Moody’s raised its
sukuk rating to Ba2/Stable from Ba3/Stable. These upgrades are a result of Sobha Realty’s strong
financial performance, including growth in EBITDA, increased revenue backlog, and improved
margins.
Company remains confident that this move will enhance its financial strength and further build
trust with stakeholders.

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