Binghatti's Green Sukuk Debut Oversubscribed 4.3x

In a significant development for sustainable finance, Binghatti Holding Limited, one of Dubai's rapidly expanding property developers, has successfully listed its debut USD 500 million Green Sukuk on Nasdaq Dubai. This landmark issuance comes under Binghatti's USD 1.5 billion Trust Certificate Issuance Programme and represents the company's first foray into ESG-linked financial instruments. The Green Sukuk, set to mature in 2029, was met with overwhelming demand, being oversubscribed 4.3 times and attracting over USD 2.1 billion in orders from both regional and global investors.

The issuance was priced at a profit rate of 7.75%, a favorable adjustment from the initial guidance of 8.125%, reflecting the robust demand and investor confidence. The proceeds from this Sukuk will be strategically allocated to a portfolio of qualified green projects, firmly aligning with Binghatti's sustainability framework and the broader UAE Net Zero 2050 initiative. This move not only underscores Binghatti's commitment to environmentally conscious development but also supports Dubai's strategic push to position itself as a global hub for sustainable finance.

The ceremonial listing was marked by the ringing of the market-opening bell at Nasdaq Dubai by Ahmed BinGhatti and Katralnada BinGhatti, Vice Chairman and CEO of Binghatti Holding, respectively. The event was attended by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), along with senior executives from both organizations. Katralnada BinGhatti emphasized that this debut Green Sukuk is a testament to the success of Binghatti's unique vertically integrated business model and the confidence that investors have in their vision and performance.

Hamed Ali expressed his pleasure in welcoming Binghatti's inaugural Green Sukuk on Nasdaq Dubai, noting the growing investor appetite for ESG-focused instruments. He highlighted that such listings demonstrate Nasdaq Dubai's capability to connect leading UAE issuers with international investors, thereby diversifying funding opportunities and advancing the UAE's sustainable finance ambitions.

With this listing, Binghatti's total Sukuk value on Nasdaq Dubai has reached USD 1.5 billion, reflecting the company's continued confidence in the exchange. The total outstanding value of debt listings on Nasdaq Dubai now exceeds USD 141 billion, reaffirming its position as one of the world's leading venues for Islamic and sustainable finance instruments.

Given the strong market response and the strategic alignment with sustainable finance goals, investors might consider holding their positions in Binghatti's Green Sukuk. The oversubscription and pricing adjustment indicate a solid market appetite, and the alignment with the UAE's sustainability objectives adds a layer of long-term value. However, as with any investment, potential investors should conduct thorough due diligence and consider their risk tolerance before making decisions.