In a sale that was more than four times oversubscribed, Binghatti Holding Ltd., one of the UAE’s fastest-growing real estate developers, successfully priced a $500 million long three-year green sukuk under its $1.5 billion trust certificate issuance program.
A portfolio of qualified green projects will be financed with the proceeds from the Regulation S Green Sukuk. The sukuk was priced at a 7.750 percent profit rate, which is 416 basis points higher than the current 3-year US Treasury yield. With an orderbook over $2.0 billion, the deal garnered significant demand from both domestic and foreign investors. The orderbook has about half of its customers from outside the United Arab Emirates.
The issuance experienced a considerable tightening from its initial forecast of 8.125 percent area due to the strong demand. The company has stable outlooks and is rated BB- by Fitch and Ba3 by Moody’s.
The London Stock Exchange and Nasdaq Dubai will both list the green sukuk. JPMorgan, Mashreq, Emirates NBD, Abu Dhabi Islamic Bank, and Dubai Islamic Bank served as the transaction’s joint worldwide coordinators. Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, First Abu Dhabi Bank, Rakbank, Sharjah Islamic Bank, and Warba Bank were the joint bookrunners.
Katralnada BinGhatti, chief executive officer of Binghatti Holding, said: “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 $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.”
Strong demand for Dubai real estate drove Binghatti Holding’s H1 2025 net profit to more than treble to Dh1.82 billion. The Group’s income increased 189% year over year to Dh6.3 billion, while its total sales reached Dh8.8 billion.
The Group completed 15 projects in the last 18 months, including five developments and seven new projects in H1 alone. It is one of the top developers in Dubai thanks to its Dh12.5 billion revenue backlog and more than Dh70 billion construction portfolio. In addition to its flagship branded residences in partnership with luxury partners Bugatti, Mercedes-Benz, and Jacob & Co., Binghatti at this time has almost 20,000 units under development across 30 projects in desirable Dubai areas, such as Downtown, Business Bay, Jumeirah Village Circle, and Meydan.
The recent purchase of a 9 million square foot mega property in Nad Al Sheba 1, which will house Binghatti’s first master-planned community and has a projected development value of approximately Dh25 billion, further strengthened the company’s development pipeline.