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Trading commences on the London Stock Exchange for Binghatti Holding's $500 million benchmark sukuk offering

Under the $1.5 billion Trust Certificate Issuance Programme of Binghatti, the sukuk was significantly demanded, with investor interest exceeding the offering by a factor of five, resulting in more than $2.5 billion worth of orders from a varied group of financiers.

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London Stock Exchange sees debut of Binghatti Holding's $500 million sukuk offering
London Stock Exchange sees debut of Binghatti Holding's $500 million sukuk offering

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

  1. 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.
  2. 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.
  3. 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.
  4. 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.

[1]: [Source 1] [2]: [Source 2] [3]: [Source 3] [4]: [Source 4]

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