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Dubai-based real estate developer Binghatti Holding has raised $500m through a five-year senior unsecured sukuk issuance.

The issuance, under Binghatti’s $1.5bn trust certificate issuance programme, drew orders exceeding $2.5bn – an oversubscription of five times. Priced at a profit rate of 8.125%, or 418 basis points over the five-year US Treasury benchmark, the sukuk achieved significant tightening from an initial price guidance of 8.500%.

Strong demand came from both regional and international investors. The sukuk will be listed on Nasdaq Dubai and the London Stock Exchange. Moody’s and Fitch have rated the firm at Ba3 and BB- respectively, both with stable outlooks.

Mashreq acted as a lead arranger on the deal.

Company performance

The issuance comes on the back of a strong first-half performance. Binghatti’s net profit for H1 2025 more than tripled to AED1.82bn ($495m). Group revenue rose 189% year-on-year to AED6.3bn, with total sales reaching AED8.8bn.

In the first six months of 2025, Binghatti launched seven new developments and delivered five, contributing to a total of 15 project handovers over the past 18 months. The company now has a development backlog worth AED12.5bn and a project pipeline exceeding AED70bn, encompassing some 20,000 units across 30 active sites.

Projects are concentrated in prime locations such as Downtown Dubai, Business Bay, Jumeirah Village Circle, and Meydan. The developer is also building a series of branded residential towers in partnership with luxury brands including Bugatti, Mercedes-Benz, and Jacob & Co.

Nad Al Sheba expansion

Binghatti’s development pipeline was recently bolstered by the acquisition of a 9 million square foot land parcel in Nad Al Sheba 1. The site will become the company’s first masterplanned community, with a projected development value of over AED25bn.