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The $500 million benchmark three-year long sukuk offering by UAE property developer Sobha Realty will have a of 8% at +401.6 basis points over US treasuries, with a 7.9955% semi-annual coupon rate.
The initial price thoughts were in the area of 8.375%.
The final book was in excess of $1.45 billion, excluding joint lead manager charges.
The sukuk will be priced later today, with the offering to come under Sobha Sukuk l Holding Limited’s $1.5 billion Trust Certificate Issuance Programme.
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.
The proceeds will be used to settle existing financings and for parent company PNC Investments’ general corporate purposes.
The sukuk will be listed on London Stock Exchange’s International Securities Market, Nasdaq Dubai and DFSA.
(Writing by Bindu Rai, editing by Seban Scaria)
