Sobha Realty has raised USD 750 million in its debut green sukuk, achieving the largest sustainable bond issuance by a property developer worldwide and underscoring Dubai’s growing role as a hub for green finance.
The five-year notes, carrying a 7.125% coupon and an effective yield of 7.375%, drew USD 2.1 billion in orders, nearly three times the offering size. The sukuk will be listed on both Nasdaq Dubai and the London Stock Exchange, giving it broad international visibility.
Market participants said the deal highlights investors’ appetite for ESG-linked instruments in the real estate sector, a space traditionally dominated by conventional financing. More than half of the allocations went to Middle East–based investors, while the remainder was spread across Asia, Europe, and the U.S., demonstrating the global reach of the transaction.
Proceeds will be channeled into financing or refinancing green projects, with Sobha operating under a framework validated by DNV, an independent sustainability ratings firm. This is the developer’s second major foray into capital markets in 2025, following a USD 500 million sukuk in May that was three times oversubscribed.
Advisory roles were spread across a wide syndicate of banks, including Mashreq, Dubai Islamic Bank, Emirates NBD Capital, JPMorgan, and Standard Chartered as joint global coordinators, supported by other leading regional and international lenders. Clifford Chance and Dentons advised on legal matters, while Grant Thornton acted as auditor.
Analysts say the issuance cements Sobha’s reputation as not only one of Dubai’s leading developers but also a pioneer in embedding sustainability into property finance. With investor demand far outstripping supply, the sukuk sets a new benchmark for how regional real estate firms can tap global capital while aligning with ESG goals.
