Sobha Realty has recently 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 US$ 300mn which took place in July 2023 and currently has an outstanding balance of US$ 270mn. 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 US$ 500mn. The tap adheres to the existing sukuk terms, preserving the favorable conditions and ensuring continued stability for the company’s valued investors.
Price tightening
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.
