- Sobha Realty’s Sukuk achieves significant milestones, including a call feature, the first of its kind in the GCC sub investment grade.
Nasdaq Dubai welcomes the listing of a USD 300 million Sukuk by Sobha Realty, one of the region’s largest real estate developers. The Islamic issuance listing introduces a new dimension to the GCC sub-investment grade Sukuk market by becoming the first of its kind to include a call feature. The Sukuk, which has a tenor of five years, offers investors an attractive annual profit rate of 8.75%, which is payable semi-annually.
With this listing, Dubai further solidifies its position as a leading hub for regional and international debt listings, reaching a total value of USD 117 billion and reinforcing its prominence in the market.
To commemorate the successful listing, Ravi PNC Menon, Co-Chairman of Sobha Realty, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the bell at the market-opening ceremony at Nasdaq Dubai.
Hamed Ali, CEO of Nasdaq Dubai and DFM said, “We are thrilled to commemorate the milestone debut Sukuk listing of Sobha Realty on Nasdaq Dubai. This significant achievement not only underscores the robustness and attractiveness of the Dubai capital market but also highlights the increasing demand for Islamic finance instruments in the region. Nasdaq Dubai remains dedicated to fostering innovation and advancing the growth of the UAE financial market, and we are proud to offer a diverse range of investment products. We extend our wholehearted support to Sobha Realty and eagerly anticipate their prosperous journey in the region.”
Ravi PNC Menon, Co-Chairman of Sobha Realty, said: “The successful listing of our USD 300 million Sukuk on Nasdaq Dubai exhibits strong investor confidence in Sobha Realty’s growth strategy and strong financial position. We were successful in attracting a diverse pool of investors through our Sukuk issuance, both domestically and internationally, which is a testament to our continued success and long-term vision. We hope to leverage this capital to shape our expansion strategies, contribute to the long-term development of the real estate sector, and create sustained value for our stakeholders.”
Through this listing, Sobha’s Sukuk has paved the way for regional debut issuers by becoming the first corporate issuer from the region in a senior unsecured benchmark-sized format this year.
About Nasdaq Dubai:
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS). The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
About Sobha Realty:
SOBHA Realty is a limited liability company that focuses on delivering premium quality luxury developments for the mid- to high-end segment and achieving a “top 2” market position (in terms of sales value) in Dubai’s private real estate segment.