Nasdaq Dubai Welcomes $300 mn Debut Sukuk Listing By Binghatti Holding

Nasdaq Dubai Welcomes $300 mn Debut Sukuk Listing By Binghatti Holding

Nasdaq Dubai welcomed the inaugural Sukuk listing by Binghatti Holding, a leading Dubai-based property developer on the region’s esteemed international financial exchange.

The debut issuance, valued at US$300 million, emphasises the pivotal role of Sukuk financing within the regional financial landscape.

The listing further enhances Nasdaq Dubai’s position as a premier venue, reinforcing its role in facilitating innovative financial instruments, contributing to the exchange’s expanding portfolio of listed debt securities.

The issuance holds particular importance in diversifying financing options for the real estate sector. Binghatti’s Sukuk listing sets a new standard as the first real estate benchmark USD-denominated Sukuk from MENA in 2024, paving the way for future issuances and solidifying the region’s prominence in the global Islamic finance arena. Notably, Fitch Ratings recently awarded Binghatti Holding a B+ credit rating with a positive outlook, underscoring the company’s financial strength and market confidence.

Comprising a coupon rate of 9.625 percent and maturing in 2027, the listing reflects the company’s strategic financial planning and commitment to offering attractive investment opportunities. The Sukuk issuance was over 2 times over-subscribed and was priced competitively with a 30 basis points tightening resulting from investor demand based on Binghatti’s compelling investor roadshows. This listing was the first real estate Sukuk issuance from the MENA region in 2024.

To commemorate the listing, Muhammad BinGhatti, CEO of Binghatti Holding, joined by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the market opening bell at Nasdaq Dubai, in the presence of a list of supporting banks.

Commenting on this, Muhammad BinGhatti, CEO of Binghatti Holding, said, “This milestone reflects our strategic vision and unwavering dedication to driving growth and excellence in the region’s financial landscape. Our successful Sukuk listing is a testament to the unwavering trust placed in Binghatti by investors and financial institutions. It underscores our commitment to transparency, reliability, and delivering value, further solidifying our position as a trusted partner in the financial arena.”

Hamed Ali, CEO of Nasdaq Dubai and DFM, added, “This listing by Binghatti Holding not only represents our continuous endeavours to position Dubai as a global hub for Sukuk financing but also reinforces our steadfast commitment to delivering financial solutions to companies in the region. The increasing interest in the Islamic financial market is a testament to the evolving and robust financial ecosystem offered through Nasdaq Dubai.”

Boosting a total debt issuance value of US$131 billion, comprising US$43 billion in bond listings and US$88 billion in Sukuk issuances, Nasdaq Dubai continues to solidify its position as a leading exchange for fixed income listings and the prominent destination for debt issuance.