Binghatti Holding, one of the UAE’s fastest growing real estate developers, has successfully priced a $500 million senior unsecured sukuk under its $1.5 billion trust certificate issuance programme, a transaction that was oversubscribed five-fold.

 

The Regulation S Sukuk issuance attracted strong regional and international investor demand, with an order book exceeding $2.5 billion. The sukuk was priced with a profit rate of 8.125%, equivalent to a spread of  418 basis points over the prevailing 5-year US Treasury yield, and given the strong levels of demand the issuance saw significant tightening from its initial guidance of 8.500% area. 

 

The robust orderbook reflects broad market confidence in Binghatti’s credit fundamentals, brand strength, and long-term strategy. The company is rated Ba3 by Moody’s and BB- by Fitch, both with stable outlook. 

 

The sukuk will be listed on both Nasdaq Dubai and London Stock Exchange.

 

On the key sukuk, Chairman Muhammad BinGhatti said: "Binghatti’s landmark sukuk marks a pivotal milestone in our journey, reinforcing our position as one of the region’s most dynamic and diversified developers."

 

"The strong demand and investor trust shown in the $500 million issue from our sukuk programme highlights Binghatti’s unique model, a vertically integrated platform underpinned by phenomenal growth and market leading execution," he stated.

 

The move comes following Binghatti Holding’s H1 2025 results which saw the group making a net profit of AED1.82 billion, with a three-fold growth mainly driven by resilient demand for Dubai real estate. 

 

The group’s total sales reached AED8.8 billion, with revenue climbing 189% YoY to AED 6.3 billion.

 

Mashreq Group CEO Ahmed Abdelaal said: "We are proud to have played a pivotal role in Binghatti’s return to the sukuk market, having supported their journey since their inaugural issuance last year. The exceptional investor response - both regional and international - underscores the strong appetite for the Dubai growth story and confidence in Binghatti’s trajectory."

 

"This landmark issuance not only affirms their access to global capital markets but also establishes a new 5-year benchmark for the sector. Mashreq continues to lead in advising regional corporates on accessing international capital markets from inception. Our partnership with Binghatti reflects the trust placed in our expertise and capabilities," he added.

 

Binghatti said it had launched seven new projects and delivered five developments in H1 alone, handing over 15 projects in the last 18 months. 

 

Its AED12.5 billion revenue backlog and over AED70 billion development portfolio positions it as one of Dubai’s leading developers, said the statement. 

 

Binghatti currently has ca. 20,000 units under development across 30 projects in prime Dubai locations including Downtown, Business Bay, Jumeirah Village Circle, and Meydan as well as its flagship branded residences in collaboration with luxury partners Bugatti, Mercedes-Benz and Jacob & Co. 

 

The company’s development pipeline was further reinforced by the recent acquisition of ca. 9 million sq. ft. megaplot in Nad Al Sheba 1, which will host Binghatti’s first master-planned community, with a projected development value of over AED25 billion, it added.