Binghatti Holding’s $500 Million Green Sukuk Oversubscribed Four Times
Binghatti green sukuk oversubscribe 2025
Binghatti Green Sukuk Spectacle: From 8.125% Guidance to 7.75% Triumph! Holding Ltd, one of the UAE’s fastest-growing real estate developers, has made headlines once again this time with the successful pricing of its inaugural $500 million green sukuk. The issuance, part of a $1.5 billion trust certificate programme, drew investor interest from across the globe, with demand outstripping supply by more than four times.
The final orderbook exceeded $2 billion, with nearly 50% of bids coming from outside the UAE. This overwhelming demand underlines both the credibility of Binghatti’s business model and the growing appetite for sustainable investments in Islamic finance.
Binghatti Green Sukuk Snapshot: Key Deal Highlights
Amount Raised: $500 million
Instrument: 3-year green sukuk (Reg S)
Oversubscription: 4.0x, with a $2.0 billion orderbook
Profit Rate: 7.750%
Spread: 416 bps over 3-year US Treasuries
Initial Guidance: 8.125% area → tightened significantly
Investor Base: Nearly half international, rest regional
The sukuk’s success is particularly notable given the current macro environment, where higher global interest rates have increased funding costs. Despite this, Binghatti secured pricing below initial guidance, showcasing investor confidence in both the company and Dubai’s broader real estate sector.
Why Binghatti Green Sukuk, and Why Now?
Green sukuk are Shariah-compliant financial instruments designed to raise capital specifically for environmentally sustainable projects. In Binghatti’s case, proceeds will be allocated to a portfolio of eligible green projects, further aligning the developer with Dubai’s sustainability agenda and the UAE’s commitment to net zero by 2050.
This issuance is not just about capital raising it positions Binghatti as a pioneer in Islamic green finance, reinforcing the narrative that sustainability is no longer an optional add-on, but a core part of corporate strategy.
Market Response: Four Times Oversubscribed
The issuance generated extraordinary demand, with an orderbook topping $2 billion. Almost half of the orders came from international investors, underscoring Dubai’s growing reputation as a hub for Islamic capital markets.
The strong appetite also allowed Binghatti to tighten pricing from initial guidance of 8.125% to 7.750%, reflecting investor willingness to back the company at more competitive levels.
This mirrors the robust response to Binghatti’s July 2025 five-year sukuk, which was oversubscribed more than five times.
Who Backed the Deal?
The green sukuk will be listed on both the London Stock Exchange (LSE) and Nasdaq Dubai, cementing Binghatti’s global visibility.
Joint Global Coordinators:
Abu Dhabi Islamic Bank
Dubai Islamic Bank
Emirates NBD
JPMorgan
Mashreq
Joint Bookrunners:
Abu Dhabi Commercial Bank
Ajman Bank
Arqaam Capital
First Abu Dhabi Bank
Rakbank
Sharjah Islamic Bank
Warba Bank
With such a heavyweight lineup of regional and global banks, the issuance benefited from broad distribution and credibility across financial markets.
Credit Ratings
Binghatti is currently rated:
Ba3 by Moody’s (stable outlook)
BB- by Fitch (stable outlook)
While both ratings sit in the non-investment grade category, the stable outlooks reflect confidence in Binghatti’s fundamentals and growth trajectory.
Leadership Commentary: Signaling Confidence
Katralnada Binghatti, CEO of Binghatti Holding:
“Our inaugural green sukuk marks a pivotal milestone in our sustainability journey, reinforcing our position as one of the region’s most dynamic and responsible developers.”
Shehzad Janab, CFO of Binghatti Holding:
“The strong demand from both green and conventional liquidity pools is a testament to the Dubai real estate story and Binghatti’s unique market position.”
The emphasis on sustainability combined with proven profitability sends a clear signal: Binghatti is intent on balancing rapid growth with responsible development.
Binghatti’s Financial Performance: Momentum in 2025
The sukuk comes on the back of a stellar first half for Binghatti:
Net Profit (H1 2025): Dh1.82 billion (3x growth YoY)
Total Sales: Dh8.8 billion
Revenue: Dh6.3 billion, up 189% YoY
Revenue Backlog: Dh12.5 billion
Development Portfolio: Dh70 billion, ~20,000 units across 30 projects
These figures reflect Binghatti’s vertically integrated model, which allows it to control costs, accelerate delivery, and scale rapidly while maintaining margins.
Expansion and Development Pipeline
Binghatti has launched seven new projects and delivered five developments in H1 2025 alone. Over the past 18 months, the company has handed over 15 projects proof of its execution strength.
Its collaborations with luxury brands such as Bugatti, Mercedes-Benz, and Jacob & Co. are part of a strategy to align with the ultra-high-net-worth lifestyle segment. For those curious about the company’s most talked-about project, here’s an analysis of whether Burj Binghatti Jacob & Co Residences is a good investment opportunity.
Additionally, Binghatti recently acquired a 9 million sq. ft. mega-plot in Nad Al Sheba 1, earmarked for its first master-planned community with a projected development value of Dh25 billion. This move signals a shift from high-profile branded towers toward large-scale community development.
The People Behind Binghatti
Strong leadership has been central to Binghatti’s meteoric rise. For those interested in the human side of the brand, we’ve profiled who is the owner of Binghatti Developers and their professional background.
This leadership, combined with a bold vision, is what has enabled Binghatti to transition from a local player into one of Dubai’s most globally recognized developers.
Why This Matters: Beyond Binghatti
The oversubscribed sukuk is not just a corporate win it has wider implications:
For Dubai: It strengthens the city’s role as a global hub for Islamic green finance.
For Investors: It demonstrates strong demand for Dubai real estate–linked credit, even in volatile markets.
For ESG Finance: It highlights the growing relevance of Shariah-compliant sustainability instruments.
As Dubai aligns itself with global climate goals, issuances like this underscore the financial sector’s contribution to sustainable development.
FAQ: Binghatti Green Sukuk
Q: What is the size of Binghatti’s inaugural green sukuk?
A: $500 million.
Q: How much was it oversubscribed?
A: More than four times, with $2 billion in orders.
Q: Where will the sukuk be listed?
A: On the London Stock Exchange and Nasdaq Dubai.
Q: What will the proceeds finance?
A: A portfolio of eligible green projects.
Q: How did Binghatti perform in H1 2025?
A: Net profit tripled to Dh1.82 billion, with sales of Dh8.8 billion and revenue growth of 189% YoY.
A Defining Moment for Binghatti and Dubai
The $500 million green sukuk isn’t just about raising capital it’s about positioning Binghatti at the forefront of sustainable finance and Dubai’s transformation into a green economy leader. With strong investor appetite, a robust financial pipeline, and an ambitious development strategy, Binghatti has shown it is both a profitable enterprise and a responsible developer.
For investors, analysts, and stakeholders alike, this issuance marks the beginning of a new chapter one where Dubai’s real estate growth and sustainable finance are increasingly intertwined.
