Trading commences on the London Stock Exchange for Binghatti Holding's $500 million benchmark sukuk offering
Binghatti Holding's Successful $500 Million Sukuk Issuance Boosts Investor Confidence
Binghatti Holding Ltd, a leading Dubai-based developer, has successfully issued a $500 million five-year Senior Unsecured Sukuk on the London Stock Exchange. The sukuk, which will also be listed on Nasdaq Dubai, attracted over $2.5 billion in orders, resulting in a five-fold oversubscription.
Details of the Sukuk Issuance
The sukuk was issued under Binghatti's $1.5 billion Trust Certificate Issuance Program and was priced at a profit rate of 8.125%. This marks a spread of 418 basis points over the prevailing five-year US Treasury yield.
Factors Contributing to Investor Confidence
- Financial Performance: Binghatti Holding's impressive financial performance in the first half of 2025 played a significant role in attracting investors. The group reported a net profit of AED 1.82 billion, with total sales reaching AED 8.8 billion. Revenue increased by 189% year-over-year, reaching Dh6.3 billion.
- Business Model: Binghatti's vertically integrated business model and long-term strategic vision are key factors in its appeal to investors. The company's recent acquisition of a 9 million square feet megaplot in Nad Al Sheba 1 to develop a master-planned community further reinforces its strategic ambitions.
- Credit Ratings: Binghatti Holding is rated Ba3 by Moody’s and BB- by Fitch, both with stable outlooks. These ratings underscore the company's financial stability and growth potential, enhancing investor trust.
- Market Presence: The dual-listing of the sukuk on Nasdaq Dubai and the London Stock Exchange reinforces Binghatti’s access to global capital markets and institutional investor backing.
Analysis
The five-fold oversubscription of the sukuk indicates strong regional and international investor interest in Binghatti Holding, reflecting confidence in Dubai's real estate sector and the company's growth prospects. The sukuk issuance provides Binghatti with significant capital to further its expansion plans, particularly in master-planned communities, which are expected to play a crucial role in shaping Dubai's real estate landscape.
Binghatti's ability to attract substantial investor interest suggests a positive outlook for future financial performances and strategic initiatives. The company's momentum in the Dubai real estate market, coupled with its access to global capital, positions it well for continued growth and diversification.
Muhammad BinGhatti, Chairman of Binghatti Holding, and Katralnada BinGhatti, CEO of Binghatti Holding, rang the opening bell at the London Stock Exchange to celebrate the listing. The strong international demand allowed them to close the books ahead of schedule. Over 50% of sukuk allocations went to non-GCC investors, reflecting growing global recognition of Binghatti.
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- The successful $500 million Sukuk issuance by Binghatti Holding offers opportunities for investors in various sectors, such as finance and real estate, as the proceeds will be used to further Binghatti's expansion plans, particularly in master-planned communities.
- Beyond the real estate sector, the strong investor interest in Binghatti Holding's Sukuk can also be attributed to the company's appealing business model, strategic vision, and stable credit ratings, with Moody’s rating Binghatti at Ba3 and Fitch at BB-.
- In addition to analyzing financial reports and business strategies, investors might also pay attention to news and updates about Binghatti Holding, as these could have an impact on the company's performance in the entertainment and sports industries as well.
- The success of Binghatti Holding's Sukuk issuance could translate into positive impacts on the broader business community, as a successful issuance from a Dubai-based developer can encourage other companies to pursue similar endeavors, thereby boosting investor confidence in the entire region.
