01-08-2025
Binghatti's $500m sukuk five times oversubscribed as investors bet on Dubai real estate boom
Dubai-based developer Binghatti Holding has raised $500 million from a five-year senior unsecured sukuk that was five times oversubscribed, attracting more than $2.5 billion in orders from regional and international investors.
The sukuk, issued under Binghatti's $1.5 billion Trust Certificate Issuance Programme, was priced with a profit rate of 8.125 per cent, tightened from initial guidance of 8.5 per cent, equivalent to a spread of 418 basis points over the five-year US Treasury yield.
Dubai developer secures $500M sukuk success
Half of the orders came from international investors, reflecting growing confidence in Binghatti's expansion plans and Dubai's property market.
Binghatti, rated Ba3 by Moody's and BB- by Fitch with stable outlooks, will list the sukuk on Nasdaq Dubai and the London Stock Exchange.
Muhammad BinGhatti, Chairman of Binghatti Holding, said: 'Binghatti's landmark sukuk marks a pivotal milestone in our journey, reinforcing our position as one of the region's most dynamic and diversified developers.'
'The strong demand and investor trust shown in the $500 million issue from our sukuk programme highlights Binghatti's unique model, a vertically integrated platform underpinned by phenomenal growth and market-leading execution.'
Ahmed Abdelaal, CEO of Mashreq Group, which advised on the transaction, said: 'The exceptional investor response—both regional and international—underscores the strong appetite for the Dubai growth story and confidence in Binghatti's trajectory.'
The issuance follows Binghatti's record H1 2025 financial results, which saw net profit more than triple to AED 1.82 billion. Revenue surged 189 per cent year-on-year to AED 6.3 billion on AED 8.8 billion in total sales.
The company launched seven projects and delivered five developments in the first half of the year, building a revenue backlog of AED 12.5 billion and a development portfolio exceeding AED 70 billion.
Binghatti currently has around 20,000 units under development across 30 projects in Dubai, including branded residences in partnership with Bugatti, Mercedes-Benz and Jacob & Co. The company recently acquired a 9 million sq. ft. site in Nad Al Sheba 1 for its first master-planned community, with a projected development value of AED 25 billion.
