UAE – Mubasher: Real estate developer Binghatti Holding has priced a $500 million five-year Senior Unsecured Sukuk in a transaction that was oversubscribed five times, according to a press release.

The Sukuk will be listed on both Nasdaq Dubai and London Stock Exchange (LSE), issued under Binghatti’s $1.50 billion Trust Certificate Issuance Programme.

Moreover, the Regulation S Sukuk issuance witnessed an order book of more than $2.50 billion while attracting strong regional and international investor demand.

The Sukuk was priced with a profit rate of 8.125%, equivalent to a spread of 418 basis points (bps) over the prevailing five-year US Treasury yield. Furthermore, given the strong levels of demand, the issuance saw significant tightening from its initial guidance of 8.500% area.

Chairman of Binghatti, Muhammad bin Ghatti, said: “The strong demand and investor trust shown in the $500 million issue from our Sukuk program highlights Binghatti’s unique model, a vertically integrated platform underpinned by phenomenal growth and market-leading execution.”

From his side, Ahmed Abdelaal, Mashreq Group CEO, noted: "Mashreq continues to lead in advising regional corporates on accessing international capital markets from inception. Our partnership with Binghatti reflects the trust placed in our expertise and capabilities.”

It is worth mentioning that the UAE property developer recently expanded its business on the global level by launching its first International Sales Boutique in London.

Locally, Binghatti is constructing its first large-scale master-planned residential community with an estimated total development value crossing AED 25 billion.