Dubai developer Binghatti has locked in a $500 million five-year sukuk, riding a surge of investor appetite that pushed demand well past expectations.
The Islamic bond was priced with a profit rate of 8.375%, translating to a spread of 461.3 basis points over US Treasuries. Interest was strong from the outset, with final order books swelling beyond $2.2 billion, excluding joint lead manager participation. That momentum allowed the issuer to tighten pricing from early guidance pitched closer to the 8.875% range.
Structured as a Regulation S senior unsecured offering, the sukuk was issued through Binghatti Sukuk 2 SPV and carries a BB- rating from Fitch. The funds will go toward general corporate needs, adding financial flexibility as the developer continues to expand its footprint in Dubai’s property market.
The notes are set to trade on both the Dubai Financial Market and the London Stock Exchange’s International Securities Market, widening access for regional and global investors.
This latest deal follows a busy stretch in the capital markets for Binghatti. In September last year, the company raised $500 million through a green sukuk to support environmentally focused real estate projects. A few months earlier, it tapped the dollar bond market with a similarly sized issue that was snapped up more than five times over.
The oversubscription trend appears firmly intact—another signal that investor confidence in the developer, and in Gulf credit more broadly, remains robust.
