Dubai’s Binghatti celebrates successful $300m sukuk issuance

Leading Dubai developer Binghatti has achieved a major milestone with the successful launch of its inaugural sukuk issuance, raising $300m over a three-year term.

The sukuk, priced competitively at 9.625 per cent, saw an impressive order book of $621m, exceeding its target by 2.1 times.

The issuance attracted diverse investors from the Middle East, Europe, Asia, and the UK, marking the first real estate benchmark US dollar-denominated sukuk from the MENA region in 2024.

The tightening of the pricing by 30 basis points showcased strong investor confidence in Binghatti’s business model and investment proposition.

“We are thrilled with the tremendous success of our debut sukuk issuance, which reflects the trust and confidence investors have placed in Binghatti,” said Muhammad BinGhatti, CEO of Binghatti. 

Local banks, including Emirates NBD, Dubai Islamic Bank, and others, acted as joint lead managers and bookrunners, facilitating the successful transaction.

Funds to fuel Binghatti projects

The funds raised will be used for various development projects undertaken by Binghatti.

This issuance further strengthens the position of Sukuk as a popular financing tool for real estate projects in the region.

In recent news, the Dubai-based developer unveiled Mercedes‑Benz Places by Binghatti – a new state-of-the-art luxury residential tower.

The project breaks ground in Dubai this year and will be completed in 2026. The 65-storey residential tower will deliver “a holistic, connected, and desirable luxury living experience”, the company said

Read: Binghatti unveils first Mercedes-Benz branded residential tower, here are the details