Today's Edition
ABU DHABI (ALETIHAD)
Sobha Realty has successfully issued its inaugural $750 million Green Sukuk.
The five-year sukuk, issued under Sobha Realty’s $1.5 billion Trust Certificate Issuance Programme, will mature in 2030 and be listed on both the London Stock Exchange and Nasdaq Dubai.
Investor demand was strong, with the order book reaching around $2.1 billion—2.8 times oversubscribed—driving a tightening of 50 basis points from initial price guidance. The sukuk was priced at a profit rate of 7.125% per annum, with an effective yield of 7.375%.
Proceeds will be allocated to financing or refinancing eligible green projects under Sobha Realty’s Green Financing Framework.
Commenting on the issuance, Ravi Menon, Chairman of Sobha Group, said, “The resounding success of our inaugural Green Sukuk issuance is a powerful testament to the market's recognition of Sobha Realty's robust financial standing and our deep, unwavering commitment to sustainable development. This transaction is not just a financing initiative; it is a strategic alignment of our capital structure with our core values.”
The issuance is expected to be rated Ba2 (Stable) by Moody’s and BB (Stable) by S&P, in line with the corporate credit rating of the obligor, PNC Investments LLC.
Sobha Realty appointed Dubai Islamic Bank, Emirates NBD Capital, J.P. Morgan, Mashreqbank and Standard Chartered as Joint Global Coordinators. Several other regional and international banks acted as Joint Lead Managers and Bookrunners.
