Moody’s Ratings has upgraded the senior unsecured sukuk rating of PNC Investments LLC , the parent company of Dubai-based Sobha Realty, from Ba3 to Ba2, while affirming the company’s corporate family rating at Ba3 with a stable outlook.
This development follows Sobha Realty’s successful issuance of its inaugural $300 million 5NC3 sukuk in July 2023, which included a call feature—a first for a GCC sub-investment grade benchmark-sized sukuk. The issuance attracted significant international investor interest, highlighting the company’s growing global appeal.
In September 2024, Sobha Realty further consolidated its position in the capital markets by issuing an additional $230 million hybrid Murabaha/Wakala sukuk. This tap issuance is set to be consolidated with the initial $300 million sukuk, forming a single series totaling $530 million. The consolidation underscores the company’s strategic approach to financing and its commitment to meeting investor demand.
The company’s robust financial performance has been a key factor in the rating upgrade. In 2022, Sobha Realty reported record pre-sales of AED 10.8 billion, with EBITDA expanding by 83% to AED 1.3 billion. Operating cash flow also saw significant growth, bolstered by strong receivable collections. These financial metrics reflect the company’s solid operational efficiency and market demand for its offerings.
