UAE developer Binghatti plans bond market debut

UAE developer Binghatti plans bond market debut

21 February 2024, ALARABIYA NEWS

The United Arab Emirates developer planning the world’s tallest residential tower is looking to raise money in the bond market for the first time.

Binghatti Holding Ltd has mandated banks to run a debut Islamic bond sale, with a series of fixed-income investor calls to start Tuesday.

The real estate firm, rated a highly speculative B+ by Fitch Ratings, intends to borrow a benchmark amount in three-year dollar-denominated sukuk, according to a person with knowledge of the matter.

The developer is following others in the UAE, including Damac Real Estate Development Ltd and FIVE Holdings Limited, in recently entering the bond market.

Sukuk dominated issuance in Gulf Cooperation Council member nations last year, taking just over half of the total $93 billion. HSBC Holdings Plc expects debuts to help push overall bond sales above $100 billion this year.

Binghatti, founded in 2008 by Emirati entrepreneur Hussain BinGatti, has partnered with jewelry firm Jacob & Co. for its Burj Binghatti Jacob & Co Residences, which it says at 116 floors will break the current record for residential buildings held by New York’s Central Park Tower.

According to Fitch, the company’s concentration on two large high-tower projects and speculative sales approach are constraining its credit rating.

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