Nasdaq Dubai Hosts Binghatti Holding’s $300 Million Debut Sukuk Listing

Nasdaq Dubai recently marked a significant milestone with the first Sukuk listing by Binghatti Holding, a prominent Dubai-based property developer. This debut issuance, valued at US$300 million, underscores the critical role of Sukuk financing in the regional financial ecosystem. The event not only enhances Nasdaq Dubai's stature as a leading venue but also contributes to its growing portfolio of listed debt securities, emphasizing its role in facilitating innovative financial instruments.

The listing is particularly noteworthy for diversifying financing options within the real estate sector. It establishes a new benchmark as the first USD-denominated real estate Sukuk from the MENA region in 2024, setting a precedent for future issuances and reinforcing the region's significance in the global Islamic finance market. Binghatti Holding's financial robustness was recently acknowledged by Fitch Ratings with a B+ credit rating and a positive outlook, reflecting market confidence in the company.

Featuring a coupon rate of 9.625 percent and set to mature in 2027, this Sukuk issuance demonstrates Binghatti's strategic financial planning and its commitment to presenting appealing investment opportunities. The issuance was met with considerable interest, being over 2 times oversubscribed and competitively priced due to investor demand following Binghatti's compelling investor roadshows.

To celebrate this achievement, Muhammad BinGhatti, CEO of Binghatti Holding, alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), participated in the ceremonial ringing of the market opening bell at Nasdaq Dubai. This event was supported by a consortium of banks.

Muhammad BinGhatti expressed his views on this landmark event, stating, "This milestone mirrors our strategic vision and steadfast commitment to fostering growth and excellence within the region's financial landscape. Our successful Sukuk listing is a testament to the trust investors and financial institutions have in Binghatti, highlighting our dedication to transparency, reliability, and delivering value."

Hamed Ali also commented on the listing's significance, noting, "Binghatti Holding's listing not only underscores our ongoing efforts to position Dubai as a global center for Sukuk financing but also reaffirms our dedication to providing financial solutions to regional companies. The growing interest in the Islamic financial market reflects the dynamic and robust financial ecosystem available through Nasdaq Dubai."

With a total debt issuance value of US$131 billion, including US$43 billion in bond listings and US$88 billion in Sukuk issuances, Nasdaq Dubai continues to affirm its leadership as a prime exchange for fixed income listings and a key destination for debt issuance.

With inputs from WAM