Sobha Realty Issues Sukuk Worth $300 Million

The first-of-its-kind sukuk also includes a call feature

Leading real estate developer Sobha Realty has successfully issued its debut $300 million 5NC3 sukuk. The pricing of this 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.

The sukuk has achieved a good share of international investors and has also made Sobha the first corporate issuer from the region in Senior Unsecured benchmark-sized format this year. Furthermore, it is the second regional High Yield Real Estate issuer to enter the public capital markets in the last several months.

Commenting on the achievement, Ravi Menon, co-chairman of Sobha Realty, said, “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.