Sobha Realty Hits a Sustainability Milestone with $750 Million Green Sukuk
September 2025 – Dubai – In a groundbreaking move heralding a new era in Islamic sustainable finance, Sobha Realty has successfully completed its largest-ever issuance: a $750 million Green Sukuk — the biggest such deal by any real estate developer in 2025.
A Stunning Market Reception
The five-year sukuk, issued under Sobha’s $1.5 billion Trust Certificate Issuance Programme, was met with overwhelming demand. The order book soared to approximately $2.1 billion, nearly 2.8 times the initial offering size, prompting a 50 basis-point tightening from the initial guidance.
With pricing set at a profit rate of 7.125% and an effective yield of 7.375%, the sukuk drew a diverse investor base: 56% from regional participants and 44% from international investors.
Dual Listing & Sustainable Purpose
To maximize international visibility, the sukuk will be dual-listed on both the London Stock Exchange and Nasdaq Dubai.
Sobha has earmarked the proceeds for financing or refinancing projects that meet the criteria set in its Green Financing Framework—a framework aligned with globally recognized sustainability standards and independently validated.
Secured Ratings & Top-Tier Advisors
Expected to carry Ba2 (Stable) and BB (Stable) ratings from Moody’s and S&P respectively, the sukuk matches the credit quality of its issuer, PNC Investments LLC.
The issuance was underwritten by a consortium of major banks:
- Joint Global Coordinators: Dubai Islamic Bank, Emirates NBD Capital, J.P. Morgan Securities, Mashreqbank, and Standard Chartered.
- Joint Lead Managers & Bookrunners (13 banks): Including First Abu Dhabi Bank, Deutsche Bank, and Abu Dhabi Commercial Bank.
- ESG Structuring Coordinators: Deutsche Bank and Emirates NBD Capital.
- Legal Advisory: Clifford Chance and Dentons.
- Auditor: Grant Thornton.
Why It Matters
Sobha Realty’s record-setting green sukuk marks a significant advancement at the intersection of Islamic finance and ESG investing. As corporates in the GCC increasingly lean into sustainability, this deal demonstrates how real estate entities can align capital raising with climate-conscious goals. Its success underscores investor enthusiasm for well-structured green instruments—and strengthens Dubai’s position as a hub for sustainable finance.