Binghatti Holding, one of the UAE’s fastest-growing real estate developers, has successfully priced a $500 million long 3-year Green Sukuk under its $1.5 billion Trust Certificate Issuance Programme, in a sale that was well over 4x oversubscribed.

 

The landmark Regulation S Green Sukuk issuance reflects Binghatti’s commitment to sustainable financing and aligns with its Green Financing Framework. Proceeds will be used to finance a portfolio of eligible green projects, reinforcing the company’s pledge to responsible growth and environmental stewardship.

 

The sukuk was priced with a profit rate of 7.750%, equivalent to a spread of 416 basis points over the prevailing 3-year US Treasury yield. The transaction attracted strong regional and international investor demand, with an orderbook exceeding $2.0 billion. Approximately 50% of the orderbook came from outside the UAE.

 

Given the robust demand, the issuance saw significant tightening from its initial guidance of 8.125% area. The strength of the orderbook underscores market confidence in Binghatti’s credit profile, brand strength, and long-term sustainable strategy. The company is rated Ba3 by Moody’s and BB- by Fitch, both with stable outlooks.

 

The Green Sukuk will be listed on the London Stock Exchange and Nasdaq Dubai. Joint Global Coordinators on the transaction were Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, J.P. Morgan, and Mashreq. The Joint Bookrunners were Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, First Abu Dhabi Bank, Rakbank, Sharjah Islamic Bank, and Warba Bank.

 

Katralnada BinGhatti, Chief Executive Officer of Binghatti Holding, commented: “Binghatti’s inaugural Green Sukuk marks a pivotal milestone in our sustainability journey, reinforcing our position as one of the region’s most dynamic and responsible developers. The strong demand and investor trust shown in the USD 500 million issuance highlights our unique and highly profitable business model, a vertically integrated platform combining rapid growth with a strong commitment to green and sustainable development.”

 

Shehzad Janab, Chief Financial Officer of Binghatti Holding, commented: “Building on the phenomenal momentum of our July 2025 five-year sukuk—oversubscribed by more than five times—we are delighted by the overwhelming support from the global investor community. The strong demand from both the green and conventional liquidity pools is a testament to the Dubai real estate story and Binghatti’s unique market position.”

 

Binghatti Holding’s H1 2025 net profit more than tripled to AED1.82 billion, driven by resilient demand for Dubai real estate. The group’s total sales reached AED8.8 billion, with revenue climbing 189% YoY to AED6.3 billion.

 

The group 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. 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 said.

 

The company’s development pipeline was further reinforced by the recent acquisition of ca. 9 million sq. ft. mega plot 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. - TradeArabia News Service