Sobha Realty raises $2.1bn with green sukuk
The order book for this five-year sukuk, maturing in 2030, was significantly oversubscribed, reaching approximately $2.1bn, 2.8 times the issuance size, the developer said
Sobha Realty has announced the successful issue of its inaugural US $750mn green sukuk. The largest transaction in the company’s history – and the largest green sukuk by a real estate developer globally in 2025 – was executed under its $1.5bn Trust Certificate Issuance Programme. It will be listed on the London Stock Exchange and Nasdaq Dubai.
The order book for this five-year sukuk, maturing in 2030, was significantly oversubscribed, reaching approximately $2.1bn, 2.8 times the issuance size, reflecting strong investor confidence in Sobha Realty’s credit profile and the firm’s ongoing commitment to sustainability.
Robust demand from a high-quality investor base, with 56% allocated to regional investors and 44% to international investors, enabled a substantial price tightening of 50 basis points from Initial Price Thoughts (IPTs). The sukuk was priced at a profit rate of 7.125% per annum, with an effective yield of 7.375% per annum. The net proceeds from this green sukuk will be allocated to financing or refinancing eligible green projects as defined in Sobha Realty’s Green Financing Framework.
This framework, aligned with the International Capital Market Association (ICMA) Green Bond Principles and the Loan Market Association (LMA) Green Loan Principles, received an independent Second Party Opinion (SPO) from DNV, confirming its alignment with market best practices.
Speaking on the occasion, Ravi Menon, Chairman, Sobha Realty said, “The resounding success of our inaugural Green Sukuk issuance is a powerful testament to the market’s recognition of Sobha Realty’s robust financial standing and our deep, unwavering commitment to sustainable development. This transaction is not just a financing initiative; it is a strategic alignment of our capital structure with our core values. It enables us to accelerate our ambitious ESG agenda, funding projects that will deliver tangible environmental benefits and solidify our position as a leader in crafting sustainable luxury communities. This milestone reinforces our dedication to creating long-term value for all our stakeholders while contributing positively to the UAE’s Net Zero by 2050 Strategic Initiative.”
The sukuk issuance is expected to be rated Ba2 (Stable) by Moody’s and BB (Stable) by S&P, in line with the corporate credit rating of the obligor, PNC Investments.
