Dentons on Sobha Realty’s debut $300M trust certificate issuance

Global law firm Dentons has advised Standard Chartered Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank, and Sharjah Islamic Bank, acting as Joint Lead Managers in the successful debut issuance of US$300 million Trust Certificates due 2028 by Sobha Sukuk Limited. Sobha Sukuk Limited is a special purpose vehicle (SPV) issuer incorporated in the Cayman Islands. The milestone transaction settled on 17th July 2023, marking the first international capital markets issuance for Sobha Realty, a real estate developer based in Dubai. The parent company of Sobha Realty, PNC Investments, served as the obligor for the transaction. 

Moody’s Deutschland assigned the Trust Certificates a rating of Ba3, while S&P Global Ratings Europe Limited rated them BB-. The issuance is dual-listed on the International Securities Market of the London Stock Exchange and Nasdaq Dubai. Offered to sophisticated investors outside the US in compliance with Regulation S under the US Securities Act of 1933, the proceeds from the issuance will be utilized by PNC Investments to settle existing financings and support its general corporate purposes. 

Dentons’ Dubai Debt Capital Markets partner Alex Roussos, added: “We are thrilled to have supported the Joint Lead Managers and Sobha Realty on its inaugural sukuk issuance. The market continues to be supportive of issuers from the local and regional real estate sectors and we hope this will remain the case for the foreseeable future.” 

The Dentons team in Dubai was led by capital markets partner Alex Roussos (pictured), with assistance from senior associate Brian O’Leary and senior legal consultant Katie Phillips.