Binghatti’s inaugural $300 million sukuk offering has been met with overwhelming investor demand, exceeding its target by 100% and reaching a final order book of $621 million. This robust response, with peak orders reaching 2.1 times the initial target, signifies strong investor confidence in Binghatti and the broader Dubai real estate market.
The sukuk issuance successfully attracted a diversified pool of regional and international investors, with significant contributions from the United Kingdom, Europe, and Asia. This achievement highlights Binghatti’s growing global presence and its ability to tap into diverse investor bases. Notably, this landmark transaction marks the first real estate benchmark US dollar-denominated sukuk from the MENA region in 2024, further solidifying Binghatti’s position as a leading innovator in the Islamic finance landscape.
The successful execution of the sukuk issuance is attributed to the invaluable support of prominent financial institutions acting as joint lead managers and bookrunners. These leading institutions include Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank, and RAKBank. Their expertise and extensive networks played a crucial role in ensuring the smooth operation and successful placement of the sukuk offering.
Commenting on the success, Muhammad BinGhatti, CEO of Binghatti Holding, stated, “We are deeply humbled and grateful for the overwhelming response to our inaugural sukuk issuance. This remarkable achievement is a testament to the trust and confidence investors have placed in Binghatti and our vision. It further validates the strength of our business model and the attractiveness of our investment proposition.”
Looking ahead, the proceeds from the sukuk issuance will be strategically utilized to fuel Binghatti’s ongoing growth and expansion plans. This includes the development of new projects, diversification into new markets, and the continuous enhancement of their product offerings to cater to the evolving needs of their customers. With this successful sukuk issuance, Binghatti is well-positioned to embark on the next phase of its growth trajectory and solidify its position as a leading player in the regional and international real estate market.
Publish Feb 26, 2024
Source: https://www.arabianbusiness.com/markets/equities/sukuk/binghattis-300mn-sukuk-sees-strong-demand-with-200-subscription
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