In a groundbreaking move for Islamic finance, Dubai-based private developer Binghatti has listed its inaugural $300 million sukuk on Nasdaq Dubai. This milestone marks the first real estate benchmark dollar-denominated sukuk from the MENA region in 2024.
The three-year Islamic bond garnered significant attention, being oversubscribed 2.1 times, reaching a staggering $621 million. Priced competitively at 9.625 percent, the sukuk reflects robust investor confidence in Binghatti’s offerings and the strength of Dubai’s capital markets.
CEO of Binghatti, Muhammad Binghatti, expressed his satisfaction with the overwhelming demand for the sukuk, which surpassed initial expectations. Notably, 20 percent of the orders came from international investors, showcasing the global trust in Binghatti and Dubai’s capital markets.
Binghatti emphasized the importance of financial flexibility for the company, highlighting the sukuk’s role in providing capital injections and working capital for ongoing and future projects. With funds already exceeding three times the sukuk amount in the Escrow account, Binghatti aims to utilize these resources for growth initiatives and expedited project completion.
Fitch Ratings recently awarded Binghatti Holding a B+ credit rating with a positive outlook, affirming the company’s financial robustness and market confidence. This rating further solidifies Binghatti’s position as a reputable player in the real estate sector.
To commemorate the sukuk listing, Muhammad Binghatti, alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the market opening bell at Nasdaq Dubai. This symbolic gesture underscores Nasdaq Dubai’s commitment to supporting financial solutions and facilitating capital market activities in the region.
Hamed Ali expressed Nasdaq Dubai’s dedication to positioning Dubai as a global hub for sukuk financing. He highlighted the increasing interest in Islamic finance, citing Nasdaq Dubai’s role in providing a robust financial ecosystem for companies in the region.
With a total debt issuance value of $131 billion, Nasdaq Dubai continues to solidify its position as a leading exchange for fixed-income listings. The exchange has facilitated $43 billion in bond listings and $88 billion in sukuk issuances, showcasing its prominence in the global financial landscape.
In conclusion, Binghatti’s sukuk listing on Nasdaq Dubai marks a significant milestone for Islamic finance and the MENA region. With strong investor demand and favorable market conditions, Binghatti demonstrates its commitment to financial innovation and growth in the real estate sector.
