Sobha raises $500m in oversubscribed sukuk offering; launches flagship app

Sobha Realty announced two major developments this week: the successful issuance of a $500m sukuk, and the launch of a new brand film for its flagship ONE Sobha App, underscoring the company’s twin focus on financial growth and digital transformation.

The company confirmed the successful issuance of the sukuk under its newly established $1.5bn Sukuk Issuance Program.

The sukuk, which matures in 2029, was oversubscribed three times, with an orderbook reaching $1.54bn.

Initial price thoughts were set at 8.375 per cent, but strong investor demand allowed the profit rate to tighten by 37.5 basis points to 8 per cent annually. The issuance saw strong interest from both regional (61 per cent) and international (39 per cent) investors, reflecting robust confidence in the company’s fundamentals and Dubai’s real estate market.

The sukuk will be listed on both the London Stock Exchange (LSE) and NASDAQ Dubai.

“This underscores the continued confidence of the investor community in our financial stability and strategic direction,” said Ravi Menon, chairman of Sobha Group. He highlighted the strength of the company’s ‘backward Integration’ model, which supports its growing revenue backlog, top-line performance, and EBITDA generation.

The issuance follows Moody’s recent upgrade of PNC Investments (Sobha Realty’s parent company) to Ba2/Stable, and is expected to receive a Ba2/stable rating by Moody’s and BB/stable by S&P.

A consortium of institutions including ADCB, ADIB, Arqaam Capital, DIB, Emirates NBD Capital, J.P. Morgan, Mashreq, RAKBANK, Sharjah Islamic Bank, Standard Chartered, and Warba Bank acted as joint lead managers and bookrunners. Clifford Chance, Dentons, and Grant Thornton supported the legal and financial aspects of the issuance.

Sobha launches app to advance customer experience

In a parallel move to enhance customer engagement, Sobha Realty unveiled a new brand film for its ONE Sobha App, developed in collaboration with Tejal Patni and ANC Advertising Agency.

The film emphasises Sobha’s “Art of the Detail” approach, showcasing the app as a digital companion for residents and prospective buyers, combining intuitive technology with luxury real estate services.

“The ONE Sobha App is a natural evolution of our philosophy, offering a seamless tool that enriches lifestyle at every stage of the journey,” said Ashish Parakh, group chief sales and marketing officer.

The app allows residents to manage property-related tasks — from booking amenities to guest access — and provides potential buyers with real-time inventory updates, digital payments, and support in over 100 languages.

In other news, Sobha Realty launched a major new development on Dubai’s Sheikh Zayed Road, unveiling plans for a self-contained, mixed-use project featuring six towers, high-street retail, green parks, and premium office space.