Binghatti’s First Bond Market Debut Soars at Over 200% Subscription

Binghatti’s First Bond Market Debut Soars at Over 200% Subscription

Dubai’s premier real estate developer Binghatti marks a significant milestone by successfully launching its inaugural $300 mn three-year Sukuk issuance, Invest-Gate reports.

Priced competitively at 9.625%, the Sukuk saw a tightening of approximately 30 basis points, showcasing robust investor demand and confidence.

Moreover, this landmark transaction attracted widespread interest from regional and international investors, with the order book soaring to an impressive 2.1 times subscription.

Exceeding expectations, the order book reached a staggering $621 mn, emphasizing the strong demand for Binghatti’s Sukuk offering.

Following the issuance, Binghatti engaged in international roadshows in Asia and the United Kingdom to meet with potential investors. The diversified investor base included significant contributions from the UK, Europe, and Asia, underlining the global appeal of Binghatti’s offering.

Also, this deal represents the first real estate benchmark US dollar-denominated sukuk from the MENA region in 2024.

Furthermore, local banks such as Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank, and RAKBank acted as joint lead managers (JLMs) and book-runners.

For his part, Muhammad BinGhatti, CEO of Binghatti, expressed delight at the overwhelming success of their debut Sukuk issuance, attributing it to investors’ trust in Binghatti. “We are thrilled with the tremendous success of our debut Sukuk issuance, which reflects the trust and confidence investors have placed in Binghatti,” said BinGhatti. “This immense response demonstrates the strength of our business model and attractiveness of our investment proposition.”

Notably, the response underscores the strength of Binghatti’s business model and the appeal of its investment proposition, solidifying its position in the industry.


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