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Binghatti’s debut USD 300 mn sukuk was 2.1x oversubscribed: Dubai developer Binghatti’s inaugural USD 300 mn, three-year sukuk issuance saw strong demand, with investors placing USD 621 mn in orders, according to a press release. The listing, which received significant interest from investors worldwide, is 2.1x oversubscribed.
The yield on the luxury developer’s issuance was set at 9.6%, seeing tightening of about 30 basis points (bps) from initial price guidance of 9% on the back of strong demand.
Where the money’s going: Binghatti intends to use the funds to finance land purchases and to restructure its current debt.
Advisors: Our friends at Mashreq and HSBC, Emirates NBD, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, and RAKBank were selected as joint lead managers and book runners.
OTHER DEBT NEWS-
DIB’s sustainable sukuk also meets strong demand:Dubai Islamic Bank has begun selling its five-year, USD 1 bn sustainable sukuk, Reuters reports, citing an arranging document it has seen. The bank tightened pricing to 95 bps over US treasuries after receiving some USD 2.4 bn in orders, down from an initial price guidance of 125 bps.
The sukuk is part of its USD 7.5 bn trust certificate issuance program, Reuters reported separately.
Advisors: The emirate’s largest Islamic bank has appointed our friends at Mashreq, along with Al Rajhi Capital, Arab Banking Corporation (ABC), Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, and Standard Chartered as lead managers and joint bookrunners. DIB will also be among the lead managers and joint bookrunners. Standard Chartered will independently manage sustainability standards.
