Page 470 - SOBHA REALTY QUARTERLY PR REPORT - JANUARY-MARCH 2024 (ENGLISH )

Investor meetings are scheduled to start from February 20 and will be followed by a
benchmark-sized US dollar-denominated senior unsecured sukuk offering, subject to
market conditions, the document added.

A report quoting a release by the developer pegged the debut sukuk offering at $500m.
“This initiative further solidifies the company’s commitment to exploring innovative
avenues for capital raising while adhering to the principles of Sharia-compliant finance,”
the company said.

The bond is expected to receive a positive reception with Dubai’s real estate market
shattering transaction records. Credit ratings agency, Fitch Ratings assigned Binghatti’s
upcoming sukuk a ‘B+’.

The agency explained that a key driver of the rating is, “Derived from Binghatti’s Long-
Term IDR. This reflects Fitch’s view that a default of the senior unsecured obligations
would reflect a default of Binghatti, in accordance with Fitch’s rating definitions.
Binghatti’s senior unsecured rating is also expected and will be assigned a final rating
upon the issue of the sukuk.”

The developer is following a trend set by other real estate groups in the UAE such as
Sobha Realty, FIVE Holdings, and DAMAC who recently entered the bond market with
similarly-sized offerings.

Additionally, sukuks dominated issuance in Gulf Cooperation Council member nations
last year, taking just over half of the total $93bn. HSBC expects bond debuts to push
overall bond sales above $100bn this year, reported Bloomberg.

Binghatti developing world’s tallest residential tower

The real estate firm is an Emirati-business group with a range of offerings in Dubai.
Founded in 2008 by Emirati entrepreneur Hussain Binghatti, it recently announced the
launch of its Mercedes-Benz branded residential tower in Dubai.

The developer has also partnered with jewellery firm Jacob & Co for its Burj Binghatti
Jacob & Co Residences, which it says will be the world’s tallest residential development
at 116 floors.

It aims to break the current record for residential buildings held by New York’s Central
Park Tower.

https://gulfbusiness.com/dubai-developer-binghatti-debut-us-dollar-bond-sukuk/