Sobha Realty makes history with $300 million Sukuk issuance

We are thrilled to have accomplished this remarkable milestone: Ravi Menon

by Staff Reporter

Sobha Realty, one of the region’s largest real estate developers, has achieved several remarkable milestones with the successful issuance of its debut $300 million 5NC3 Sukuk.

The pricing of this groundbreaking Islamic issuance, which includes a call feature, the first of its kind for a GCC sub investment grade benchmark-sized Sukuk, marks a significant achievement for Sobha Realty and the entire industry at large.

Sobha’s Sukuk drives investor diversification

Additionally, Sobha’s Sukuk drove exceptional investor diversification, achieving a higher share of international investors than seen in any of the recent real estate developer issuances from the region, highlighting how well Sobha’s unique credit story resonated with global investors.

Sobha’s Sukuk has also paved the path for debut issuers in 2023, as the first debut Corporate issuer from the region in Senior Unsecured benchmark-sized format this year.

Furthermore, the region’s dominant real estate developer becomes only the second regional, High Yield Real Estate issuer to enter the public capital markets in the last several months, once again highlighting the continued demand strength for leading real estate issuers. These accomplishments highlight Sobha’s commitment to exploring innovative financing options and expanding its presence in the global capital markets.

Remarkable milestone

Commenting on the achievement, Mr Ravi Menon, the Co-Chairman of Sobha Realty, expressed his satisfaction and gratitude, stating, ” We are thrilled to have accomplished this remarkable milestone with the successful issuance of our inaugural $300 million Sukuk. This achievement showcases our commitment to innovation and our ability to attract diverse investors from around the world. We are proud of the trust placed in us by the global investment community.”

The successful issuance of the Sukuk not only strengthens Sobha’s financial position but also demonstrates the growing appetite for Islamic finance instruments in the GCC region.

Sobha’s pioneering approach and ability to tap into new markets have positioned the company as a key player in the real estate sector as it continues to expand its footprint and explore new opportunities with its unwavering pursuit of excellence and focus on quality.

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