Binghatti sukuk tap 420% oversubscribed on strong global demand

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Dubai developer Binghatti saw record interest for its recent $200 million sukuk tap, receiving around $2.10 billion in orders.

That represented an oversubscription of approximately 420% backed by global investors, according to a press release.

The recent issuance’s success builds on February's debut $300 million sukuk, which gained 200% demand, bringing the total size of Binghatti’s sukuk deals to $500 million.

The high demand for Binghatti’s sukuk from both regional and international investors. Strong demand from international investors at almost 40% highlights global confidence in Binghatti's financial instruments, resulting in a price reduction of around 20 basis points (bp).

Muhammad BinGhatti, Chairman of Binghatti, said: “We are pleased with the exceptional response to our Sukuk tap which highlights the continued confidence and trust that both regional and global investors have in Binghatti.”

“The oversubscription and favourable pricing reflect our solid market position and the strength of our brand. We remain committed to delivering value to all of our stakeholders and driving growth in the real estate sector,” BinGhatti added.

Binghatti operates in prominent districts such as Downtown, Business Bay, Dubai Silicon Oasis, Al Jaddaf, Jumeirah Village Circle, Dubai Science Park, Liwan, and Dubai Land Residence Complex.

Known for its collaborations with global luxury brands like Bugatti, Mercedes-Benz, and Jacob & Co, Binghatti plans to expand its real estate portfolio in Dubai in the coming years.