OMNIYAT Debuts Inaugural Green Sukuk on Nasdaq Dubai

In a landmark achievement for sustainable finance, OMNIYAT, Dubai’s preeminent ultra-luxury real estate developer, has successfully listed its inaugural green sukuk on NASDAQ Dubai. This significant move not only marks OMNIYAT’s entry into the international debt capital markets but also emphasizes its dedication to financial strength and sustainable development in the face of global challenges.

Raising Funds Through Green Sukuk

OMNIYAT raised USD 500 million via a three-year Islamic offering, attracting significant interest from the investment community. The issuance was met with robust demand, leading to an impressive oversubscription of 3.6 times, which totaled USD 1.8 billion. This enthusiasm signals a growing appetite among investors for financial products that align with sustainability goals.

Pricing and Financial Details

The green sukuk certificates were priced strategically at a spread of 461.7 basis points over the three-year US Treasury yield, with a profit rate of 8.375%. These details underscore OMNIYAT’s ability to tap into favorable market conditions while offering competitive returns to investors.

Commitment to Sustainability

The proceeds from this issuance will primarily support investments in sustainable development initiatives, following OMNIYAT’s Green Financing Framework. This framework is fully aligned with the ICMA Green Bond Principles (GBP) 2021, which ensures compliance with international best practices and investor transparency. Such alignment not only enhances the credibility of the green sukuk but also reinforces OMNIYAT’s commitment to responsible investing.

Voices from Leadership

Mahdi Amjad, the Founder and Executive Chairman of OMNIYAT, emphasized the significance of this milestone, stating, "Today’s bell ringing marks more than just a financial milestone; it signals OMNIYAT’s long-term commitment to sustainable growth and responsible investment." He noted that the successful launch reflects the intrinsic relationship between profitability and positive environmental impact.

Amjad further expressed pride in listing the green sukuk on NASDAQ Dubai, describing it as a world-class exchange that provides unmatched visibility and connectivity to global investors. This platform is seen as optimal for enhancing engagement with both regional and international capital markets, thus elevating OMNIYAT’s stature in the industry.

Ratings and Market Position

This issuance follows a positive evaluation from credit rating agencies, with S&P Global assigning OMNIYAT a BB- long-term credit rating, complemented by a first-time Long-Term Issuer Default Rating (IDR) of BB- from Fitch Ratings. Both agencies have assigned a stable outlook, reinforcing investor confidence in OMNIYAT’s financial health.

OMNIYAT’s strategic focus on prime locations such as Palm Jumeirah and Business Bay has allowed the company to consistently attract ultra-high-net-worth international buyers. This targeted approach has cemented OMNIYAT’s leading position in Dubai’s ultra-luxury real estate market, making the green sukuk a strategic step in its growth trajectory.

The Future of Sustainable Investment

The inaugural green sukuk from OMNIYAT is a pivotal step toward creating a sustainable financial future. As the global investment landscape increasingly gravitates toward environmentally responsible initiatives, OMNIYAT’s move not only showcases its capacity for innovation but also sets a precedent for other real estate developers in the region and beyond.

This initiative represents a clear intersection of luxury real estate and sustainability, where financial returns and environmental responsibilities can coexist. As OMNIYAT continues its journey in the investment space, this green sukuk issuance stands as a testament to the evolving nature of finance, wherein businesses are held accountable not just for their economic impacts but also for their ecological footprints.