Binghatti raises $500 million in oversubscribed sukuk issuance

Binghatti Holding has raised $500 million through a five-year senior unsecured sukuk, the company said, in a transaction that drew more than five times the amount offered.

The sukuk, issued under Binghatti’s $1.5 billion Trust Certificate Issuance Programme, was priced with a profit rate of 8.125%, representing a spread of 418 basis points over the five-year U.S. Treasury yield. The issuance attracted over $2.5 billion in orders, prompting a tightening from the initial pricing guidance of around 8.5%.

The sukuk will be listed on both Nasdaq Dubai and the London Stock Exchange. It was issued under Regulation S, targeting non-U.S. investors.

Binghatti is rated Ba3 by Moody’s and BB- by Fitch, both with stable outlooks.

The company reported a net profit of AED 1.82 billion in the first half of 2025, more than triple its earnings for the same period last year. Revenues rose 189% year-on-year to AED 6.3 billion, with total sales reaching AED 8.8 billion.

In the first half of the year, Binghatti launched seven new developments and delivered five, bringing its total handovers to 15 projects over the past 18 months. The group currently has a revenue backlog of AED 12.5 billion and a development portfolio exceeding AED 70 billion, covering approximately 20,000 units across 30 projects.

The projects are concentrated in key Dubai locations including Downtown, Business Bay, Jumeirah Village Circle, and Meydan. The company has also developed branded residential towers in collaboration with Bugatti, Mercedes-Benz, and Jacob & Co.

Binghatti’s pipeline was recently expanded by the acquisition of a 9 million square foot land plot in Nad Al Sheba 1, which will form the site of its first master-planned community. The development is expected to have a value of over AED 25 billion.