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Sukuk issuances in the UAE continue to attract real estate developers, with Sobha Realty being the latest firm to mandate banks for a three-year, dollar-denominated Reg S benchmark sukuk.
Banks mandated include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, JP Morgan, Mashreq, RAKBANK, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank, which have been appointed joint lead managers and bookrunners.
The offering will come under Sobha Sukuk l Holding Limited’s $1.5 billion Trust Certificate Issuance Programme.
PNC Investments, the parent of Sobha Realty, reduced the size of an existing $300 million sukuk by $30 million in September last year, and went in for a $230 million tap bringing the total to a benchmark sized $500 million.
The company is the third largest real estate developer in Dubai, rated Ba2 by Moody’s and BB by S&P, both with a stable outlook.
In recent months, the UAE property rally has seen a string of developers come out with sukuk issuances, with Dubai-based luxury developer Omniyat being the latest with a $500 million green sukuk in April, following strong investor interest.
Earlier in March, Aldar Investment Properties (AIP), a subsidiary of Abu Dhabi’s Aldar Properties, also raised $500 million through a 10-year green sukuk, while Dubai’s Damac Real Estate Development sold its first benchmark issuance in 18 months in February, with the $750 million 3.5-year sukuk.
(Writing by Bindu Rai, editing by Seban Scaria)
