Binghatti Prices $500 Million Green Sukuk

Binghatti Holding Ltd, one of the UAE’s fastest-growing real estate developers, has successfully priced a $500 million long 3-year Green Sukuk under its $1.5 billion Trust Certificate Issuance Programme, in a sale that was well over 4x oversubscribed.

This is the second Sukuk issuance from the company with the debut issue, a $500 million 5-year Senior Unsecured Sukuk was listed on the London Stock Exchange (LSE) in August this year marking a key milestone in the company’s international growth journey.

The landmark Regulation S Green Sukuk issuance reflects Binghatti’s commitment to sustainable financing and aligns with its Green Financing Framework. Proceeds will be used to finance a portfolio of eligible green projects, reinforcing the company’s pledge to responsible growth and environmental stewardship.

The sukuk was priced with a profit rate of 7.75%, equivalent to a spread of 416 basis points over the prevailing 3-year US Treasury yield. The transaction attracted strong regional and international investor demand, with an orderbook exceeding $2 billion. Approximately 50% of the orderbook came from outside the UAE.

Given the robust demand, the issuance saw significant tightening from its initial guidance of 8.125% area. The strength of the orderbook underscores market confidence in Binghatti’s credit profile, brand strength, and long-term sustainable strategy. The company is rated Ba3 by Moody’s and BB- by Fitch, both with stable outlooks.

The Green Sukuk will be listed on the London Stock Exchange and NASDAQ Dubai. Joint Global Coordinators on the transaction were Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, J.P. Morgan, and Mashreq. The Joint Bookrunners were Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, First Abu Dhabi Bank, Rakbank, Sharjah Islamic Bank, and Warba Bank.

Binghatti Holding CEO Katralnada BinGhatti said that the inaugural Green Sukuk marks a pivotal milestone in their sustainability journey, reinforcing the company’s position as one of the region’s most dynamic and responsible developers.

The strong demand and investor trust shown in the $500 million issuance highlighted their unique and highly profitable business model, a vertically integrated platform combining rapid growth with a strong commitment to green and sustainable development, he added.

Financial Results

Binghatti Holding’s H1 2025 net profit more than tripled to $500 million, driven by resilient demand for Dubai real estate. The Group’s total sales reached $2.4 billion, with revenue climbing 189% y-o-y to $1.72 billion.

The Group launched seven new projects and delivered five developments in H1 alone, handing over 15 projects in the last 18 months. Its $3.4 billion revenue backlog and over $19.06 billion development portfolio position the company as one of Dubai’s leading developers.

Binghatti currently has 20,000 units under development across 30 projects in prime Dubai locations including Downtown, Business Bay, Jumeirah Village Circle, and Meydan as well as its flagship branded residences in collaboration with luxury partners Bugatti, Mercedes-Benz and Jacob & Co.

The company’s development pipeline was further reinforced by the recent acquisition of 9 million sq. ft. mega plot in Nad Al Sheba 1, which will host Binghatti’s first master-planned community, with a projected development value of over $6.8 billion.

Arada’s Sukuk

Meanwhile, Aarada Developments, a leading master developer in the UAE, listed a $450 million Sukuk Issued under Arada Sukuk 2 Limited’s $1 billion Trust Certificate Issuance Programme. The Sukuk which matures in 2030, was oversubscribed more than four times, attracting over $2 billion in

orders from regional and international investors.

The issuance was priced at a profit rate of 7.150%, reflecting strong investor appetite. This listing builds on Arada’s established track record in the debt capital markets. Following this admission, Arada’s total outstanding Sukuk on Nasdaq Dubai now amount to $1.5 billion across three

transactions.