Sobha Realty has successfully completed the issuance of its inaugural Green Sukuk, raising USD 750 million in what marks both the company’s largest ever transaction and the biggest Green Sukuk by a real estate developer worldwide to date. The issuance was executed under its USD 1.5 billion Trust Certificate Issuance Programme and will be listed on both the London Stock Exchange and Nasdaq Dubai.

Demand for the five-year instrument, which matures in 2030, was exceptionally strong, attracting orders worth approximately USD 2.1 billion, 2.8 times the issue size. This high level of investor interest enabled the company to achieve significant price tightening of 50 basis points from the initial guidance. The Sukuk was ultimately priced with a profit rate of 7.125% per annum, delivering an effective yield of 7.375% per annum.

Investor participation was well balanced across geographies, with 56% of allocations going to regional investors and 44% to those based internationally. This broad base of demand highlighted confidence in Sobha Realty’s financial position and its commitment to advancing sustainable practices.

The net proceeds will be channelled into financing or refinancing projects eligible under Sobha Realty’s Green Financing Framework. This framework, developed in line with the International Capital Market Association’s Green Bond Principles and the Loan Market Association’s Green Loan Principles, has been independently reviewed by DNV, which confirmed its compliance with recognised best market practices.

Mr. Ravi Menon, Chairman of Sobha Group, stated: “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. It enables us to accelerate our ambitious ESG agenda, funding projects that will deliver tangible environmental benefits and solidify our position as a leader in crafting sustainable luxury communities. This milestone reinforces our dedication to creating long-term value for all our stakeholders while contributing positively to the UAE’s Net Zero by 2050 Strategic Initiative.”

The Sukuk is expected to receive a rating of Ba2 (Stable) from Moody’s and BB (Stable) from S&P, consistent with the corporate credit rating of the obligor, PNC Investments LLC.

Sobha Realty assembled an international syndicate of financial institutions to manage the transaction. Dubai Islamic Bank PJSC, Emirates NBD Capital, J.P. Morgan Securities plc, Mashreqbank psc, and Standard Chartered Bank acted as Joint Global Coordinators. They were supported by Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Ajman Bank PJSC, Arab Banking Corporation (B.S.C.), Arqaam Capital, Deutsche Bank, First Abu Dhabi Bank PJSC, The National Bank of Ras Al-Khaimah (P.S.C.), Sharjah Islamic Bank PJSC, and Warba Bank K.S.C.P., who served as Joint Lead Managers and Joint Bookrunners. Deutsche Bank and Emirates NBD Capital also took on the role of Joint ESG Structuring Coordinators.

On the advisory side, Clifford Chance and Dentons acted as legal counsels, with Grant Thornton appointed as the auditor for the issuance.