Clifford Chance

Clifford Chance advises PNC Investments on Sobha Realty US$300 million sukuk

Leading international law firm Clifford Chance has advised PNC Investments LLC (Sobha Realty), which is the parent company of Sobha LLC, one of the leading private real estate developers in Dubai, on its debut issuance of a US$300 million sukuk.

Incorporated in 2011 in the UAE, the Sobha Realty group has delivered a number of high-end mixed-use communities and mixed-use tower developments with a focus on residential developments, including District One and Sobha Hartland.

The five-year sukuk was priced with a 8.75 per cent. profit rate and is callable in year three at 104.375 per cent. of the outstanding face amount. Reflecting investors' confidence in the debut issuance, the transaction was over-subscribed and priced at the lower end of initial pricing guidance. The landmark transaction includes a call feature, making it the first of its kind for a GCC sub-investment grade benchmark-sized sukuk.

The sukuk forms part of Sobha Realty's overarching financing strategy, with the proceeds being used to repay existing debt as well as for general corporate purposes.

Clifford Chance's team comprised Partner and Head of Middle East Capital Markets, Stuart Ure (Dubai), Alekhya Prakash (Counsel, Dubai), Nader Koudsi (Associate, Dubai) and Saby Mahmud (Trainee, Dubai).

Stuart Ure commented: "We are proud to have supported the Sobha Realty team on its historic debut issue. The accomplishment is a testament to the Sobha Realty teams' dedication to innovation and reflects the strong appetite from the global investment community for access to the sukuk."

Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank and Standard Chartered Bank were joint global coordinators and, together with Sharjah Islamic Bank, were the joint lead managers on the issuance.

Consistently ranked Band 1 in legal directories, Clifford Chance was named Banking Legal Adviser of the Year at the Bonds, Loans & Sukuk Middle East Awards 2022, International Law Firm of the Year (Middle East) at the Middle East Legal Awards 2023 and Middle East International Law Firm of the Year at the Chambers Middle East Awards 2023. Clifford Chance was also awarded 15 awards at the recent Bonds, Loans and Sukuk Awards 2023.