Binghatti Holding lists its inaugural $300 million Sukuk on Nasdaq Dubai

Inayat-ur-Rahman, Business Editor

Nasdaq Dubai welcomes the inaugural Sukuk listing by Binghatti Holding, a leading Dubai-based property developer on the region’s esteemed international financial exchange.

The debut issuance, valued at  $300 million, emphasizes the pivotal role of Sukuk financing within the regional financial landscape. The listing further enhances Nasdaq Dubai’s position as a premier venue, reinforcing its role in facilitating innovative financial instruments, contributing to the exchange’s expanding portfolio of listed debt securities.

The issuance holds particular importance in diversifying financing options for the real estate sector. Binghatti’s Sukuk listing sets a new standard as the first real estate benchmark USD-denominated Sukuk from MENA in 2024, paving the way for future issuances and solidifying the region’s prominence in the global Islamic finance arena. Notably, Fitch Ratings recently awarded Binghatti Holding a B+ credit rating with a positive outlook, underscoring the company’s financial strength and market confidence.

Comprising a coupon rate of 9.625 per cent and maturing in 2027, the listing reflects the company’s strategic financial planning and commitment to offering attractive investment opportunities. The Sukuk issuance was over 2 times over-subscribed and was priced competitively with a 30 basis points tightening resulting from investor demand based on Binghatti’s compelling investor roadshows. This listing was the first real estate Sukuk issuance from the Mena region in 2024. 

To commemorate the listing, Muhammad BinGhatti, CEO of Binghatti Holding, joined by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the market opening bell at Nasdaq Dubai, in the presence of a list of supporting banks.

Commenting on this, Muhammad BinGhatti, CEO of Binghatti Holding said: “This milestone reflects our strategic vision and unwavering dedication to driving growth and excellence in the region’s financial landscape. Our successful Sukuk listing is a testament to the unwavering trust placed in Binghatti by investors and financial institutions. It underscores our commitment to transparency, reliability, and delivering value, further solidifying our position as a trusted partner in the financial arena.”

Hamed Ali, CEO of Nasdaq Dubai and DFM said: “This listing by Binghatti Holding not only represents our continuous endeavours to position Dubai as a global hub for Sukuk financing but also reinforces our steadfast commitment to delivering financial solutions to companies in the region. The increasing interest in the Islamic financial market is a testament to the evolving and robust financial ecosystem offered through Nasdaq Dubai.”

Boosting a total debt issuance value of $131 billion, comprising $43 billion in bond listings and $88 billion in Sukuk issuances, Nasdaq Dubai continues to solidify its position as a leading exchange for fixed income listings and the prominent destination for debt issuance.

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS). The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA).

Binghatti Developers is an award-winning real estate developer based in Dubai, headed by CEO and Head of Architecture, Muhammad BinGhatti. The dynamic company offers distinctive properties with sophisticated architectural designs, world-class materials, and unparalleled lifestyle amenities. Empowered by its rich business expertise, the company strives to redefine the industry standards by delivering high-quality projects.

Binghatti Developers is currently operating in a multitude of districts across Dubai, including the Business Bay, Dubai Silicon Oasis, Al Jaddaf, and Jumeirah Village Circle. The company has bold expansion initiatives on the horizon, with a specific emphasis on developing its real estate portfolio in Dubai.

Meanwhile, Dubai-based luxury developer Binghatti Properties has  launched a $1-billion new branded residence in Downtown, housing duplex and triplex apartments.

The uber-luxury project Mercedes-Benz Place l Binghatti, launched in partnership with German luxury carmaker Mercedes-Benz, will be built in one of the very few leftover plots in the most sought-after location Downtown Dubai.

Housing a total of 150 apartments, prices in the 65-storey tower start from Dhs10 million. The project is set for completion in the fourth quarter of 2026.

It will house two, three and four-bedroom units and five-bedroom penthouses, along with duplex and triplex apartments. The two-bedroom floors will get only four suites and there will be only three suites on the three-bedroom unit floor. And there will be only two five-bedroom penthouses on each floor.

Rising to 341 metres, the tower’s residents will be offered a range of restaurants, sports and wellness zones, lounges, non-automotive retail, exhibition spaces, and parking. Mercedes-Benz Places will include electric vehicle charging, smart mobility apps, ride-hailing, bike and scooter sharing, chauffeur services and automated valet parking. Each and every unit will come with its own private swimming pool.