Binghatti Holding Set to Launch Debut US Dollar Sukuk

Dubai 20 Feb 2024:

Binghatti, a leading Emirati property development company headquartered in Dubai, is preparing to undertake a significant financial milestone with the launch of its inaugural US Dollar Sukuk in the coming days, subject to market condition. This will highlight the company’s strategic move towards diversifying its funding base.

Emirates NBD, Dubai Islamic Bank, Abu Dhabi Islamic Bank, HSBC, Mashreq, Sharjah Islamic Bank, and RAKBANK have been appointed as Joint Lead Managers and bookrunners on the contemplated inaugural debt capital markets transaction.

The debut US dollar sukuk issuance, anticipated to be of benchmark size, is intended to have a three-year maturity. This initiative further solidifies the company’s commitment to exploring innovative avenues for capital raising while adhering to the principles of Sharia-compliant finance.

Binghatti Holding recently concluded a successful non-deal roadshow, engaging with fixed income investors in Hong Kong and London. Additionally, Fitch Ratings recently assigned Binghatti Holding a B+ credit rating with a positive outlook.

Binghatti’s project offering in the uber-luxury segment features branded developments in collaboration with global luxury brands including Bugatti, Mercedes-Benz, and Jacob & Co. All three branded developments mark the first ever debut in the real-estate industry for these global brands. Binghatt’s branded uber-luxury developments are valued at a total project value of circa AED 17.4 billion. In addition to the uber-luxury project offering, Binghatti’s developments in the mainstream and luxury segments amount to an additional value of circa AED 13.8 billion, bringing the total value of its diverse project portfolio to a figure exceeding circa AED 31.2 billion.

The CEO expressed his enthusiasm about the upcoming sukuk issuance, emphasizing the company’s strong financial position and market reputation.

With the contemplated debut US dollar sukuk, Binghatti enters a new phase of growth, fueled by strategic investments and a commitment to delivering value to stakeholders.