• The new sukuk was issued under its recently established Sukuk Issuance Program; received strong interest from both regional and global investors
  • The new issuance is a 3.75-year sukuk, set to mature in 2029, offering a profit rate of 8% annually

Dubai, UAE: Sobha Realty, the leading global luxury real estate developer, yesterday announced the successful issuance of USD 500 Mn sukuk under its recently established USD 1.5 Bn Sukuk Issuance Program. This latest sukuk will be listed on the London Stock Exchange (LSE) and NASDAQ Dubai.

For this USD 500 Mn 2029 maturity sukuk issuance, the order book was oversubscribed three times to reach USD 1.54 Bn. Initial Price Thoughts (IPTs) were set at 8.375%. However, strong interest from regional and international investors led to a notable price tightening of 37.5 basis points, bringing the effective yield to 8% p.a. Of the total issuance, 61% has been allocated to local and 39% to international investors, respectively, reaffirming investors’ confidence in Sobha Realty’s growth and Dubai’s real estate sector outlook.

Mr. Ravi Menon, Chairman of Sobha Group, said: “The successful completion of Sobha Realty’s USD500 million sukuk issuance underscores the continued confidence of the investor community in our financial stability and strategic direction. Our strategy, underpinned by our Backward Integration model, continues to yield strong financial results, including a substantially healthy revenue backlog, increased topline, and EBITDA generation. This reinforces our long-term commitment to growth and value creation.”

Maturing in 2029, the new sukuk issuance follows the recent upgrade of PNC Investments LLC (PNCI), the parent company of Sobha Realty, by Moody’s rating. In April 2025, Moody’s upgraded PNCI’s rating to Ba2/Stable from Ba3/Stable. In line with the improved existing rating, the newly issued sukuk are expected to achieve Ba2/stable rating by Moody’s and BB/stable rating by S&P.

Sobha Realty appointed Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, J.P. Morgan, Mashreq, RAKBANK, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank as Joint Lead Managers and Joint Bookrunners. Having supported Sobha Realty’s previous issuances, these institutions bring the proven expertise necessary to ensure continued success.

Furthermore, as part of the Sukuk issuance process, Sobha Realty appointed Clifford Chance and Dentons as legal counsels and Grant Thornton as financial auditor, reinforcing its commitment to the highest standards of governance and collaboration with leading institutions.

About Sobha Realty

Sobha Realty is an international luxury developer committed to redefining the art of living through sustainable communities. Established in 1976 as an interior decoration firm in Oman by PNC Menon – a visionary entrepreneur – the company has grown its presence with developments and investments in the UAE, Oman, and India. For nearly five decades, Sobha Realty has been redefining the real estate value chain through ‘Backward Integration’ by leveraging its inherent in-house capabilities of conceptualisation, design, and development. Today, the firm has developed into one of the most prominent and premium real estate developers in the UAE and aims to become a global real estate developer with its essence, the ‘Art of the Detail,’ remaining deeply embedded in the organisation’s DNA. With a proven track record of delivering projects ahead of schedule, the company has thirteen masterplans across the UAE and is continually expanding its presence in the city with a number of other prominent projects. The flagship community of Sobha Realty (Sobha Hartland) is a thriving community that is home to over 11,000 residents.

Sobha Siniya Island, Sobha Realty's masterplan and its very first-ever luxury island project, features luxury villas, mansions, and resorts within a serene island setting.