Sobha Realty raises $300m with debut sukuk

Sobha Realty raises $300m with debut sukuk

Dubai-based property developer Sobha Realty has raised $300m from its debut sale of Islamic bonds or sukuk. The pricing of the 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 and the entire real estate industry. The developer’s sukuk drove exceptional investor diversification. The five-year sukuk non-callable for three years launched at a yield of 8.75 per cent, the lower end of initial guidance earlier this week of 875 per cent, after drawing final orders of more than $525m, according to a document from one of the arranging banks that was seen by . The issuance also paved the way for debut issuers in 2023, as the first debut corporate issuer from the region in senior unsecured benchmark-sized format this year. “We are thrilled to have accomplished this remarkable milestone with the successful issuance of our inaugural $300m sukuk,” Ravi Menon, the co-chairman of Sobha Realty said, adding that the issuance showcases the company’s ability to attract diverse investors from around the world. Sobha’s pioneering approach and ability to tap into new markets have positioned the company as a key player in the real estate