Date Published: August 1, 2025
Executive Summary
Dubai-based real estate developer Binghatti Holding has successfully priced a $500 million five-year unsecured sukuk, which saw five times oversubscription, signaling robust investor confidence. The deal was managed under its $1.5 billion Trust Certificate Issuance Program, with a final coupon rate set at 8.125%, tightened significantly thanks to high demand. Orders exceeded $2.5 billion from both regional and international investors.
Key Deal Highlights
- Oversubscription Level: 5× across a broad investor base.
- Pricing Metrics: Issued at 8.125%, narrowed from initial guidance (~8.50%), representing a 418 basis-point spread over the five-year US Treasury yield.
- Listings: Dual-listed on Nasdaq Dubai and the London Stock Exchange, reaffirming Binghatti’s global capital credentials.
Broader Market & Company Context
- Financials H1 2025: Binghatti reported sales of AED 8.8 billion, revenue of AED 6.3 billion (up ~189% YoY), and net profit of AED 1.82 billion—more than double the prior-year figure.
- Credit Ratings: Assigned Ba3 (Moody’s) and BB‑ (Fitch) with stable outlooks.
- Development Footprint: The company manages over 30 active projects across Dubai, including branded residences with Bugatti, Mercedes‑Benz, and Jacob & Co., with a development pipeline valued at AED 70 billion.
Leadership Perspective
Chairman Muhammad BinGhatti emphasized that the sukuk reflects investor trust in Binghatti’s integrated business model and growth trajectory.
Ahmed Abdelaal, CEO of Mashreq Group, noted that the strong demand underscores investor confidence in Dubai’s real estate growth story and Binghatti’s execution capability.
Why This Deal Matters
- Market Signal: Indicates investor confidence in Dubai’s real estate market.
- Benchmark Setting: Sets a new 5-year benchmark for Islamic finance in the sector.
- Platform for Growth: Strengthens Binghatti’s international capital market presence.
Sources
This post is based on factual reporting originally published by Arabian Business, Economy Middle East, Mubasher, and Binghatti Holding press releases. The content has been summarized and reworded for informative and editorial purposes.
