Dubai: The Dubai developer Binghatti has confirmed plans to tap the debt markets with its first US dollar denominated sukuk 'in the coming days'. The aim is to diversify the company's funding base, as it starts on three high-profile projects in the city, including building the world's tallest residential-only tower in the world.
Emirates NBD, Dubai Islamic Bank, Abu Dhabi Islamic Bank, HSBC, Mashreq, Sharjah Islamic Bank, and RAKBank are joint lead managers and bookrunners on the planned debt transaction.
The debut issuance - 'anticipated to be of benchmark size - is to have a 3-year maturity. This 'further solidifies the company's commitment to exploring innovative avenues for capital raising while adhering to the principles of Sharia-compliant finance', the developer said.
Binghatti Holding had recently concluded a successful non-deal roadshow, networking with fixed income investors in Hong Kong and London. (Fitch Ratings recently assigned Binghatti Holding a B+ credit rating with a positive outlook).
Binghatti’s projects include those with brand names Bugatti, Mercedes-Benz, and (the jeweller) Jacob & Co. The branded developments are valued at a total project value of around Dh16 billion. The developer's other projects are valued around Dh7.6 billion.
