Binghatti Holding Ltd., one of the UAE’s fastest-growing real estate developers, announced that its $500 million three-year green sukuk was oversubscribed more than four times under its $1.5 billion trust certificate program. The issuance was structured under Regulation S and will finance a portfolio of qualified green projects within Binghatti’s developments.
Details of the Offering and Investor Demand
The sukuk was priced at a profit rate of 7.750 percent, reflecting a spread of 416 basis points above the three-year US Treasury yield. Due to overwhelming investor interest, pricing tightened from initial guidance of 8.125 percent. The order book exceeded $2.0 billion, with nearly half of the demand coming from outside the UAE. The issue carries stable outlooks with credit ratings of BB- (Fitch) and Ba3 (Moody’s), and will be listed on the London Stock Exchange and Nasdaq Dubai.
Leading banks in the transaction included JPMorgan, Mashreq, Emirates NBD, Abu Dhabi Islamic Bank, and Dubai Islamic Bank as global coordinators, alongside Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, First Abu Dhabi Bank, Rakbank, Sharjah Islamic Bank, and Warba Bank as bookrunners.
Leadership Statements
Katralnada BinGhatti, CEO of Binghatti Holding, highlighted that the inaugural green sukuk marks a milestone in the company’s sustainability journey, strengthening its reputation as a responsible and fast-growing developer. He emphasized that the strong demand showcases investor trust and validates Binghatti’s vertically integrated, highly profitable business model.
Shehzad Janab, CFO, added that the success follows the July 2025 five-year sukuk, which was oversubscribed more than five times. He noted that demand from both green and conventional liquidity pools is a testament to Dubai’s real estate growth story and Binghatti’s unique market positioning.
Financial Results and Development Pipeline
The oversubscription coincided with Binghatti’s strong performance in Dubai’s real estate sector. Net profit for H1 2025 more than tripled to Dh 1.82 billion, revenue rose 189% year-on-year to Dh 6.3 billion, and total sales reached Dh 8.8 billion.
In the past 18 months, Binghatti delivered 15 projects, with five completed and seven new launches in H1 alone. The company maintains a revenue backlog of Dh 12.5 billion and has over Dh 70 billion in construction projects. Currently, around 20,000 units are under development across 30 projects in prime Dubai districts, including Downtown, Business Bay, Jumeirah Village Circle, and Meydan. Recently, Binghatti acquired a 9-million-sq-ft plot in Nad Al Sheba 1 to develop its first master-planned community, with a projected value exceeding Dh 25 billion.
Why It Matters for Real Estate and Green Finance
The success of this issuance underscores the growing role of sustainable finance in real estate, particularly in dynamic markets like Dubai. Strong global demand highlights investor confidence in green property development and in companies that balance growth with environmental responsibility.
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