Binghatti’s $300 Million Sukuk Oversubscribed, Signalling Strong Investor Confidence in Dubai’s Tallest Residential Tower Developer

Dubai-based property developer Binghatti has garnered significant interest from investors for its real estate projects and its recent $300 million bond issue. The company, known for constructing what is set to be the world’s tallest residential tower, witnessed subscriptions for its debut Islamic sukuk reaching $621 million, more than double the issue size, with an order book ratio of 2.1 times.

The three-year sukuk, marking Binghatti’s first foray into the debt market, was competitively priced at 9.625 per cent. It experienced a tightening of approximately 30 basis points due to strong investor demand. This issuance is the first real estate benchmark US dollar-denominated sukuk from the MENA region in 2024.

Binghatti is working on three significant projects, including the tallest standalone residential tower and two branded residential projects in collaboration with Mercedes-Benz and Bugatti.

Muhammad BinGhatti, CEO of Binghatti, expressed his delight at the successful debut of the sukuk issuance, stating, “We are thrilled with the tremendous success of our debut Sukuk issuance, which reflects the trust and confidence investors have placed in Binghatti. This immense response demonstrates our business model’s strength and our investment proposition’s attractiveness.