Walkers advise Sobha Realty on the successful completion of US$230 million Sukuk tap

We advised Sobha Realty, a leading global luxury real estate developer, and PNC Investments LLC on the successful execution of a strategic tap into its existing sukuk. This latest tap is an extension of the developer’s inaugural sukuk issuance of US$300 million, which took place in July 2023 and currently has an outstanding balance of US$270 million. The sukuk was listed on both the London Stock Exchange (LSE) and NASDAQ Dubai.

The noticeable interest in Sobha Realty’s sukuk appears to have led to a notable price tightening of 95 basis points, highlighting strong demand from both regional and international investors. Approximately 25% of the interest comes from global sources, reflecting strong confidence in the local financial instruments.

Sobha Realty appointed Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Sharjah Islamic Bank, and Standard Chartered Bank as Joint Global Coordinators, Joint Lead Managers, and Bookrunners for this transaction.

The team led by Partner, Ciaran Bohnacker and Senior Associate, Szymon Durlo acted as Cayman Islands legal counsel to Sobha Sukuk Limited, and PNC Investments LLC in the tap, as well as the initial 2023 issuance.