Real estate developers Binghatti Holding has issued a $300 million sukuk – the first real estate benchmark USD-denominated Sukuk from MENA in 2024 – to be listed at Nasdaq Dubai.
The issuance is of particular importance in diversifying financing options for the real estate sector, emphasising the role of sukuk financing in the region.
The sukuk comprises a coupon rate of 9.625 percent and matures in 2027. Binghatti Holding recently received a B+ credit rating with a positive outlook from Fitch Ratings, underscoring the company’s financial strength and market confidence.
The sukuk issuance was over-subscribed by two times and was priced competitively with a 30 basis points tightening, resulting from investor demand based on Binghatti’s investor roadshows.
Muhammad BinGhatti, CEO of Binghatti Holding, commented: “This milestone reflects our strategic vision and unwavering dedication to driving growth and excellence in the region’s financial landscape. Our successful sukuk listing is a testament to the unwavering trust placed in Binghatti by investors and financial institutions. It underscores our commitment to transparency, reliability, and delivering value, further solidifying our position as a trusted partner in the financial arena.”
Binghatti’s sukuk not only paves the way for future issuances and solidifying the region’s prominence in the global Islamic finance arena, it also enhances Nasdaq Dubai’s position as a premier venue, reinforcing its role in facilitating innovative financial instruments and contributes to the exchange’s expanding portfolio of listed debt securities.
Hamed Ali, CEO of Nasdaq Dubai and DFM, added: “This listing by Binghatti Holding not only represents our continuous endeavours to position Dubai as a global hub for sukuk financing but also reinforces our steadfast commitment to delivering financial solutions to companies in the region.
“The increasing interest in the Islamic financial market is a testament to the evolving and robust financial ecosystem offered through Nasdaq Dubai.”
To commemorate the listing, BinGhatti and Ali rang the market opening bell at Nasdaq Dubai, in the presence of a list of supporting banks.
Nasdaq Dubai has a total debt issuance value of $131 billion, comprising $43 billion in bond listings and $88 billion in sukuk issuances.
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