Binghatti Gets Solid Response for Debut Bond

The transaction by the prominent real estate developer has garnered widespread demand from both regional and international investors

Leading Dubai-based property developer Binghatti, said it has achieved a significant milestone with the successful launch of its inaugural $300 million three-year sukuk issuance. Priced competitively at 9.625%, the Islamic bond experienced a tightening of 30 basis points, demonstrating strong investor demand and confidence. This transaction garnered widespread demand from both regional and international investors, with the order book peaking at an impressive 2.1 times before subscription.

The order book reached an excess of $600 million, peaking at $621 million, underscoring the robust demand for Binghatti’s sukuk offering. Ahead of the issuance, the property developer had met investors during international roadshows in Asia and the United Kingdom. The order book attracted a diversified investor base, presenting notable contributions from the UK, Europe and Asia accounting for a large percentage of demand.

“We are thrilled with the tremendous success of our debut sukuk issuance, which reflects the trust and confidence investors have placed in Binghatti. This immense response demonstrates the strength of our business model and attractiveness of our investment proposition.”

Muhammad BinGhatti, CEO, Binghatti

The deal was the first real estate benchmark US dollar denominated sukuk from the MENA region in 2024. Local banks including Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank and RAKBank acted as joint lead managers (JLMs) and bookrunners on the deal. The overwhelming response from the market highlights Binghatti’s remarkable achievement on its first Sukuk issuance and reflects the developer’s distinguished reputation in the industry, he added.