UAE real estate developer Binghatti Holding is poised to launch its debut US dollar sukuk, or Islamic bond, in the coming days.
The Sharia-compliant bond issuance aims to diversify the company’s funding sources while providing an opportunity for fixed-income investors to back Binghatti’s growth strategy.
The developer recently concluded a positive non-deal roadshow where it engaged fixed-income investors in Hong Kong and London. Rating agency Fitch also assigned Binghatti a credit rating of B+ with a positive outlook, underscoring the company’s solid financial position and prospects.
If issued according to current plans, the sukuk would have a benchmark size and three-year maturity. A syndicate of leading UAE and international banks including Emirates NBD, Dubai Islamic Bank, Abu Dhabi Islamic Bank, HSBC, Mashreq, Sharjah Islamic Bank, and RAKBANK have signed on as joint lead managers and book-runners for the landmark transaction.
The issuance comes as the company’s continues expanding its diverse real estate portfolio. Valued at over AED23.6 billion, projects include ultra-luxury branded developments in partnership with major brands like Bugatti, Mercedes-Benz, and Jacob & Co totalling AED16 billion. Additional mainstream and luxury properties total another AED7.6 billion.
The company’s CEO, Muhammad BinGhatti, “expressed enthusiasm” for the upcoming sukuk issue, the announcement stated, noting it will fuel further strategic investments in line with the company’s commitment to stakeholders.
The issuance marks the company’s foray into an important new phase of growth supported by capital from global fixed-income markets.
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