Dentons advises on Sobha Realty’s debut USD300 million Trust Certificate issuance

Dentons has advised Standard Chartered Bank, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank and Sharjah Islamic Bank as Joint Lead Managers on the successful debut issuance of USD300 million Trust Certificates due 2028 by Sobha Sukuk Limited, a special purpose vehicle (SPV) issuer incorporated in the Cayman Islands. The transaction, which settled on July 17, 2023, represents the inaugural international capital markets issuance by Dubai-based real estate developer, Sobha Realty. PNC Investments LLC (the parent company of Sobha Realty) was obligor on the transaction.

The Trust Certificates were assigned a rating of Ba3 by Moody’s Deutschland GmbH and a rating of BB- by S&P Global Ratings Europe Limited. The transaction is dual-listed on the International Securities Market of the London Stock Exchange and on Nasdaq Dubai, and the Trust Certificates were offered to sophisticated investors outside the US in reliance upon Regulation S under the US Securities Act of 1933. The proceeds of the issuance will be used by PNC Investments LLC to settle existing financings and for 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. This was a highly significant transaction for the company, and we are delighted to have been able to support to help bring the transaction to market. 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 partner Alex Roussos, with assistance from senior associate Brian O’Leary and senior legal consultant Katie Phillips.