Debutante Dubai Luxury Realty Developer Omniyat Holdings Enters the International Sukuk Market with a Benchmark Inaugural Senior Unsecured USD500mn Green Sustainable Sukuk
Dubai-based luxury real estate developer Omniyat Holdings is the latest debutante in the high-end real estate sector to enter the international Sukuk market, successfully raising a maiden benchmark fixed rate USD500mn Senior Unsecured RegS Green Sukuk. The Sukuk with a 3-year tenor, was issued to finance eligible green projects in line with the sustainability finance framework of Omniyat Holdings.
The Sukuk certificates were issued by Omniyat Sukuk 1 Limited (Cayman Islands Incorporated) on 29 April 2025 on behalf of the Obligor, Omniyat Holdings. The company had mandated a consortium of local, regional and international banks including Abu Dhabi Commercial Bank, Ajman Bank, Bank of Sharjah, Citigroup, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates NBD Bank, First Abu Dhabi Bank, KEB Hana Bank, JP Morgan, Mashreqbank, National Bank of Ras Al-Khaimah (RAKBANK), Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank on 24 April 2025 to act as Joint Lead Managers and Bookrunners, and to arrange a series of investor calls and roadshows with accounts in the UK, EU, the MENA region, Asia and Offshore US for a benchmark US dollar-denominated Sukuk offering. The result was a USD500mn 3-year fixed rate RegS Senior Unsecured Green Sukuk which matures on 6 May 2028.
The initial price thoughts (IPTs) on 28 April 2025 for Omniyat Holdings’ 3-year 144A Reg S US dollar benchmark Sukuk were in the area of 8%. The issuance attracted exceptional investor demand, with the order book oversubscribed 3.6 times and exceeding USD1.8bn. This strong interest from both international and regional investors, said Omniyat Holdings, reflected the global confidence in Omniyat’s credit profile, the strategic appeal of the UAE’s real estate sector, and the country’s resilient economic outlook.
Initially marketed as a benchmark size deal with price guidance in the high 8.00 percent area, the strength of the order book enabled the issuer to tighten pricing and set the final yield at 8.375 percent on 28 April 2025. On the back of this momentum, the issuance was upsized to USD500mn, from the initially announced USD400mn. Notably, 25% of the deal was allocated to investors from the UK, Europe, and the US offshore markets, highlighting robust international participation.
Mahdi Amjad, Founder and Executive Chairman at Omniyat, commented: “Our debut into the capital markets with a green sukuk is a major milestone for Omniyat. It underscores our commitment to sustainability, prudent capital management, and delivering long-term value to our stakeholders. We are deeply grateful to our banking partners for their instrumental role in delivering such a successful outcome. This milestone marks a bold new chapter in Omniyat’s evolution, reinforcing its position as a trusted innovator in luxury real estate and a committed contributor to Dubai’s sustainable future. This debut in the international debt capital markets reinforces Omniyat’s long-term commitment to sustainable development, financial strength, and global investor engagement.”
Mohamed Khadiri, CEO of Bank of Sharjah, one of the consortium members, stressed: “This Sukuk issuance marks a strategic milestone as Omniyat’s first foray into the Debt Capital Markets. Completing this landmark transaction amid volatile market conditions is a testament to Omniyat’s solid business fundamentals and the market’s confidence in its long-term vision. We are very pleased to count Omniyat among our valued corporate clients. This transaction is the beginning of a longstanding and mutually beneficial partnership. Our participation also reaffirms Bank of Sharjah’s ongoing commitment to advancing sustainable finance initiatives in alignment with our Environmental, Social and Governance (ESG) framework and principles.”
Proceeds from the issuance, says Omniyat, will be used in line with Omniyat’s Green Financing Framework, which aligns with the International Capital Market Association’s (ICMA) Green Bond Principles (2021). The framework ensures global best practice and transparency in allocating funds toward eligible green projects, including energy-efficient buildings, renewable energy integration, and sustainable resource management.
The Sukuk certificates will be dual listed on Nasdaq Dubai and the International Securities Market of the London Stock Exchange.
Note to Newsletter readers from DDCAP Group™: In addition to the above details, we were pleased that the Group was involved in the new issuance by Omniyat, with the US$225m Murabaha tranche being facilitated by DD&Co Limited and utilisation of its multiple award-winning platform ETHOS AFP™.