Binghatti’s inaugural sukuk offering, valued at $300 million and priced at 9.625%, has garnered significant investor interest, exceeding initial targets by a notable margin. The order book reached an impressive $621 million, reflecting a 200% subscription rate and peak orders exceeding initial expectations by 2.1 times.
This strong demand demonstrates the success of Binghatti’s international roadshows in Asia and the United Kingdom, which effectively attracted a diverse investor base. Notably, significant contributions originated from the UK, Europe, and Asia. This landmark transaction marks the first real estate benchmark US dollar-denominated sukuk issued by the MENA region in 2024.
The issuance process benefitted from the invaluable support of local banks acting as joint lead managers and bookrunners. These institutions, including Emirates NBD, Dubai Islamic Bank, HSBC, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Mashreq Bank, and RAKBank, played a crucial role in ensuring the smooth execution of the transaction.
Commenting on the success, Muhammad BinGhatti, CEO of Binghatti Holding, stated, “We are delighted by the overwhelming response to our inaugural sukuk issuance. This robust investor confidence underscores the strength of our business model and the attractiveness of our investment proposition.”
News Source: Arabian Business
