Binghatti's Bond Market Debut Soars At Over 200% Subscription
Date
2/28/2024 2:48:28 PM
(MENAFN- Khaleej Times) The leading Dubai Real estate developer Binghatti, has achieved a significant milestone with the successful launch of its inaugural $300 million 3-year sukuk issuance. Priced at 9.625 per cent, the sukuk experienced a tightening of approximately 30 basis points, demonstrating strong investor demand and confidence.
This transaction garnered widespread demand from both regional and international investors, with the order book peaking at an impressive 2.1 times subscription. The order book reached excess of $600 million, peaking at $621 million, underscoring the robust demand for Binghatti's Sukuk offering.
Ahead of the issuance, Binghatti had met with investors on international roadshows in Asia and the United Kingdom. The order book attracted a diversified investor base, presenting notable contributions from the UK, Europe and Asia accounting for a large percentage of demand. The deal was the first real estate benchmark US dollar denominated sukuk from the Mena region in 2024.
Local banks including Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank and RAKBank acted as joint lead managers (JLMs) and bookrunners on the deal.
“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 the strength of our business model and attractiveness of our investment proposition,” said Muhammad BinGhatti, CEO of Binghatti.
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