Sobha Realty raises USD 750 mn in debut green sukuk: Dubai-based developer Sobha Realty issued its debut green sukuk, raising USD 750 mn from the five-year notes — the largest such issuance by a real estate company globally, according to a statement (pdf). The notes, due in 2030, will list on Nasdaq Dubai and the London Stock Exchange, carrying a 7.125% coupon and an effective yield of 7.375%.

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REMEMBER- Sobha had been on the road last week marketing the maiden benchmark-sized green sukuk.

Investor demand: The issuance drew USD 2.1 bn in orders — making the offering 2.8x oversubscribed — tightening pricing by 50 bps from initial guidance. Some 56% of allocations went to regional investors, with the remainder going to international investors.

Use of proceeds: Net proceeds will finance or refinance eligible green projects under Sobha’s green financing framework, which carries a second-party opinion from DNV.

This is Sobha’s second capital markets outing this year: In May, the developer — rated Ba2 by Moody’s and BB by S&P, both with stable outlooks — sold USD 500 mn in a sukuk issuance that was 3x oversubscribed as part of its USD 1.5 bn trust certificate program.

ADVISORS- Our friends at Mashreq, along with Dubai Islamic Bank, Emirates NBD Capital, JPMorgan, and Standard Chartered acted as joint global coordinators. They were joined by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Ajman Bank, Arab Banking Corporation, Arqaam Capital, Deutsche Bank, First Abu Dhabi Bank, RakBank, Sharjah Bank and Warm Bank as joint lead managers. Deutsche Bank and Emirates NBD Capital were joint ESG structuring coordinators. Clifford Chance and Dentons provided counsel, with Grant Thornton as auditor.

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