UAE: Binghatti enters sukuk market with $621mln subscriptions

UAE: Binghatti enters sukuk market with $621mln subscriptions

28 February 2024, ZAWYA

UAE – Dubai real estate developer Binghatti has successfully launched its inaugural $300 million Sukuk issuance, according to a press release.

Priced at 9.625%, the three-year issuance witnessed a tightening of nearly 30 basis points, which reflects strong investor demand and confidence.

Meanwhile, the order book soared at a 2.1 times subscription after reaching an excess of $600 million and peaking at $621 million.

Before the transaction, Binghatti met with investors on international roadshows in Asia and the UK.

The order book attracted a wide-ranging investor base, highlighting notable contributions from the UK, Europe, and Asia accounting for a large percentage of demand.

The deal marked the first real estate benchmark US dollar-denominated sukuk from the MENA region in 2024.

Muhammad BinGhatti, CEO of Binghatti, commented: “This immense response demonstrates the strength of our business model and attractiveness of our investment proposition.”

Local banks including Emirates NBD, Dubai Islamic Bank (DIB), HSBC, Abu Dhabi Islamic Bank (ADIB), Sharjah Islamic Bank, Mashreq Bank, and RAKBank acted as joint lead managers (JLMs) and bookrunners on the deal.

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