Binghatti's USD 500M Sukuk Boosts Nasdaq Dubai
Binghatti Holding's USD 500 million Sukuk listing on Nasdaq Dubai highlights the growing demand for Islamic finance and solidifies Dubai's status as a financial hub.
Summary
Binghatti Holding's USD 500 million Sukuk listing on Nasdaq Dubai was oversubscribed five times, underscoring investor confidence and Dubai's role as a leading financial hub.
In a significant step that underscores the burgeoning demand for Islamic finance instruments, Nasdaq Dubai has welcomed the listing of a USD 500 million Sukuk by Binghatti Holding, a prominent Dubai-based property developer. This listing is not only a testament to Binghatti's financial strength but also highlights Dubai's strategic role as a global financial hub.
The Sukuk, issued under Binghatti’s USD 1.5 billion Trust Certificate Issuance Programme, is set to mature in 2030. It was met with overwhelming interest, being oversubscribed five times with orders exceeding USD 2.5 billion from both regional and international investors. This strong demand allowed the issuance to be priced at a profit rate of 8.125%, a significant tightening from the initial guidance, reflecting investor confidence and the appeal of Islamic finance instruments.
At the market opening bell ceremony, Muhammad BinGhatti, Chairman of Binghatti Holding, expressed his delight at the successful listing, marking it as a pivotal moment in the company’s growth trajectory. He emphasized the confidence that investors have in Binghatti's vision and financial robustness. Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), echoed these sentiments, highlighting the sustained global demand for Islamic finance and the strong appeal of Dubai as a capital markets hub.
This listing brings Binghatti’s total Sukuk listings on Nasdaq Dubai to USD 1 billion, showcasing the company’s confidence in the exchange and the broader financial ecosystem of Dubai. With Nasdaq Dubai's total Sukuk listings reaching USD 98.6 billion across 108 listings, the exchange continues to solidify its position as one of the world's leading venues for Sukuk.
For investors, the oversubscription of Binghatti's Sukuk and the tightening of its profit rate are indicators of strong market confidence. This could suggest a positive outlook for Binghatti and, by extension, the broader Dubai financial market. Given the robust demand and the strategic positioning of Dubai as a financial hub, investors might consider a 'buy' stance on Binghatti’s Sukuk and related financial instruments.
In conclusion, Binghatti Holding's successful Sukuk listing not only marks a milestone for the company but also reaffirms Dubai's status as a key player in the global Islamic finance sector. Investors looking for opportunities in Islamic finance may find this development particularly encouraging.
Source
Summary
Nasdaq Dubai has listed a USD 500 million Sukuk issued by Binghatti Holding, a Dubai-based property developer. This listing is part of Binghatti’s USD 1.5 billion Trust Certificate Issuance Programme and is set to mature in 2030. The Sukuk was oversubscribed five times, attracting over USD 2.5 billion in orders from regional and international investors, leading to a profit rate of 8.125%. This marks Binghatti's total Sukuk listings on Nasdaq Dubai at USD 1 billion. The listing ceremony was attended by Muhammad BinGhatti, Chairman of Binghatti Holding, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market. The Sukuk is also listed on the London Stock Exchange. The total Sukuk listings on Nasdaq Dubai have reached USD 98.6 billion across 108 listings, highlighting its role as a global hub for Islamic finance.
