Dubai-based Sobha Realty, a prominent player in the real estate market, has successfully launched a non-callable sukuk with a five-year maturity and a three-year non-call period. The sukuk, which attracted substantial investor interest, was priced at a yield of 8.75 percent, at the lower end of the initial guidance range of 8.75-8.875 percent. Orders for the Sukuk exceeded $525 million, with a peak demand reaching over $600 million.
The joint global coordinators for this issuance are Dubai Islamic Bank, Emirates NBD Capital, Mashreq, and Standard Chartered, while Sharjah Islamic Bank joins as a joint lead manager. The involvement of these renowned institutions underlines the credibility and market confidence in Sobha Realty’s offering.
With an 8 percent market share in Dubai’s real estate market during the first quarter, Sobha Realty has experienced significant growth amid the city’s post-Covid recovery. The company’s sales reached Dh10.82 billion, with revenues totaling Dh5.55 billion last year, reflecting a notable increase from Dh4.38 billion and Dh3.17 billion in 2021.
According to the company’s presentation, Sobha Realty has a manageable debt profile. As of March 30, the firm had debt maturing as follows: Dh180 million in the current year, Dh171 million in the following year, Dh1.34 billion in 2025, and Dh106 million in 2026. Notably, the net debt to operating EBITDA ratio has significantly improved, decreasing from 13.5 in 2020 to 0.9 in 2022, indicating a healthier financial position.
Established in 1976 by its chair, PNC Menon, Sobha Realty originated as an interior design business in Oman. Over the years, it has expanded its operations across the UAE, Oman, Bahrain, Brunei, and India, solidifying its presence in key real estate markets.
Sobha Realty’s successful Sukuk issuance showcases strong investor confidence and highlights the company’s growth trajectory within Dubai’s thriving real estate sector.