A prominent developer in Dubai, Binghatti, announced that the successful launch of its first $300 million, three-year sukuk issuance marked a significant milestone. The Islamic bond, which was priced competitively at 9.625%, tightened by 30 basis points, indicating strong investor confidence and demand.
Investors from across the globe expressed strong interest in this deal, with the order book reaching an astounding 2.1 times subscription at its peak.
The order book demonstrated the strong demand for Binghatti’s sukuk offering, reaching a peak of $621 million.
Binghatti had met investors during international roadshows in Asia and the UK before the issuance. A wide range of investors were drawn to the order book, with significant contributions from the UK, Europe, and Asia, which accounted for a sizable portion of demand.
The transaction represented the first MENA-region sukuk in 2024 to be benchmarked in real estate and denominated in US dollars.
Joint lead managers (JLMs) and book runners on the deal included local banks Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank, and RAKBank.
On the investor response, CEO Muhammad BinGhatti said: “We are thrilled with the tremendous success of our debut sukuk issuance, which reflects the trust and confidence investors have placed in Binghatti. This immense response demonstrates the strength of our business model and the attractiveness of our investment proposition.”
He went on to state that the tremendous reception from the market underscores Binghatti’s outstanding accomplishment with its inaugural Sukuk issuance and demonstrates the developer’s illustrious standing in the sector.