Binghatti’s $500M Sukuk Makes Historic Nasdaq Dubai Debut

Nasdaq Dubai has added Binghatti Holding’s $500mn Sukuk to its listings. The offering drew remarkable investor interest with orders exceeding $2.5 billion, which led to a five-fold oversubscription. The Sukuk will mature in 2030 and offers an 8.125% profit rate. Strong investor demand helped tighten this rate from the original guidance[-4].

Binghatti’s latest Sukuk comes under the company’s $1.5 billion Trust Certificate Issuance Program and marks a key milestone for this Dubai-based property developer. The company’s total Sukuk listings on Nasdaq Dubai now stand at $1 billion, which shows its trust in the exchange. Nasdaq Dubai’s position as a global Islamic finance hub continues to grow stronger. The exchange now features 108 Sukuk listings worth $98.6 billion, while its total debt issuances have reached $131 billion through 152 listings.

Binghatti Lists $500M Sukuk on Nasdaq Dubai

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Muhammad BinGhatti, Binghatti Holding’s Chairman, achieved a most important milestone by ringing the market opening bell at Nasdaq Dubai. The company’s AED 1835.97 million ($500 million) Sukuk made its official debut on the region’s international financial exchange. Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, attended this momentous ceremony [9, 10].

Binghatti’s AED 5.51 billion Trust Certificate Issuance Program launched the Sukuk with maturity set for 2030. Muhammad BinGhatti rang the ceremonial bell and called this successful listing “another important milestone in Binghatti’s growth experience”.

The listing “expresses the sustained global just need for Islamic finance instruments and Dubai’s strong appeal as a capital markets hub,” Hamed Ali noted. Nasdaq Dubai’s steadfast dedication provides issuers a platform to connect with investors of all types.

Binghatti Holding maintains stable outlooks with a BB- rating from Fitch and Ba3 from Moody’s. The Sukuk’s presence on both Nasdaq Dubai and the London Stock Exchange shows the company’s strategic approach to tap global capital markets and expand its investor base worldwide.

Investor Demand Drives 5x Oversubscription

Binghatti’s first sukuk offering drew amazing interest from investors. Orders went beyond AED 9.18 billion ($2.5 billion), which is a big deal as it means that the offering was oversubscribed five times. The final profit rate dropped by a lot to 8.125% from the original guidance of 8.500%. This showed a spread of 418 basis points over the common five-year US Treasury yield[72].

The Regulation S sukuk caught attention from many types of investors. About half of them were from international markets. This reliable orderbook shows how much investors trust Binghatti’s core business, brand power, and future plans.

Muhammad BinGhatti, Chairman of Binghatti Holding, said: “The strong demand and investor trust highlight Binghatti’s unique model, a vertically integrated platform underpinned by phenomenal growth and market-leading execution”.

The company’s financial health shines through its current ratings of Ba3 from Moody’s and BB- from Fitch, both with stable outlooks.

Ahmed Abdelaal, Group CEO of Mashreq, emphasized: “The exceptional investor response underscores the strong appetite for the Dubai growth story and confidence in Binghatti’s trajectory. This landmark issuance affirms their access to global capital markets and establishes a new 5-year standard for the sector”.

This overwhelming market response shows how much investors believe in both the developer’s business approach and Dubai’s growth potential.

Nasdaq Dubai Strengthens Role in Islamic Finance

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Nasdaq Dubai strengthens its position as a premier global hub for Islamic finance with Binghatti’s latest listing. The exchange now features Sukuk listings worth USD 98.6 billion through 108 listings, which makes it one of the world’s leading venues for Islamic bonds.

The emirate has become a global powerhouse for Sukuk listings, with USD 81.98 billion listed in total. Nasdaq Dubai accounts for USD 79.47 billion of these listings. This success aligns perfectly with the emirate’s goal to become the world’s Islamic economy center.

The broader debt capital market at Nasdaq Dubai has reached AED 499.38 billion (approximately USD 136 billion) across 160 listings. This growth shows how international investors trust Dubai as their gateway between Middle Eastern and global markets.

The platform’s success continues to grow. Between January and September 2023, 12 Sukuks worth USD 8.32 billion were listed. The UAE’s Islamic financial market strength earned it the fourth global rank by assets in the 2023 Islamic Finance Development Indicator.

The exchange’s Sukuk platform appeals to a wide range of issuers beyond real estate developers. The Republic of Indonesia stands out among these issuers and has listed USD 2.75 billion in Sukuk issuances.

Binghatti made history with its $500 million Sukuk listing on Nasdaq Dubai. The market showed overwhelming confidence in Binghatti’s business model and Dubai’s property sector with orders five times higher than the offering. The profit rate dropped to 8.125% from the original guidance of 8.500%, which shows how eager investors were to get in.

The deal has strengthened Nasdaq Dubai’s role as a leading Islamic finance destination. The platform now boasts $98.6 billion in total Sukuk listings spread across 108 different issues. Binghatti’s success story fits perfectly with Dubai’s goal to become a global Islamic economy hub. The emirate’s Sukuk listings have already reached an impressive $82 billion.

Half of all orders came from international investors, showing growing worldwide trust in UAE-based companies. This diverse investor base gives Binghatti better access to capital markets and boosts Dubai’s reputation as a bridge between Middle Eastern and international finance.

Binghatti chose to list on both Nasdaq Dubai and London Stock Exchange to expand its global reach. Major rating agencies have given the company stable outlooks, proving its strong market position and financial health. Dubai keeps growing as a key Islamic finance hub and attracts issuers from real estate developers to governments worldwide.