Clifford Chance Guides Binghatti’s $300M Debut Sukuk Issue 

Global law firm Clifford Chance has provided legal counsel to Binghatti Holding Limited (“Binghatti”) on its inaugural issuance of US$300 million ijara-murabaha sukuk, which concluded on February 29, 2024. 

This debut venture into the international debt capital markets for Binghatti involved the issuance of Regulation S sukuk with a 3-year tenor. These sukuk have been listed on the London Stock Exchange’s International Securities Market and are available for trading on Nasdaq Dubai. 

With a portfolio boasting 29 completed and fully sold projects valued at AED 3.9 billion, along with 16 projects under development (estimated at AED 18.6 billion) and an additional 15 projects in the planning stage (estimated at AED 12.5 billion), Binghatti has shown significant growth since its establishment in 2008. The company has recently expanded into the uber-luxury residential property sector through collaborations with renowned brands like Jacob & Co., Bugatti, and Mercedes, signalling further growth prospects. 

The sukuk issuance, which saw over-subscription exceeding 2x and competitive pricing with a 30 basis points tightening, marked the first real estate sukuk offering from the MENA region in 2024. Investor demand, fuelled by Binghatti’s compelling roadshows, played a significant role in the success of the issuance. 

Muhammad BinGhatti, CEO of Binghatti (pictured), expressed his excitement about the overwhelming response to their debut sukuk issuance, emphasizing the trust and confidence investors have shown in the company’s business model and investment proposition. 

Stuart Ure, who led the Clifford Chance team for the transaction, commended Binghatti’s strategic shift into a new phase of growth and highlighted the transaction’s success as a reflection of investor confidence in Binghatti’s value proposition and senior management’s efforts. 

Clifford Chance’s team comprised partner and Head of Middle East Capital Markets, Stuart Ure (Dubai), Alekhya Prakash (Counsel, Dubai) and Sophie Larsen (Associate, Dubai). 

The joint lead managers on the transaction were Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, HSBC, Mashreqbank (acting through its Islamic Banking Division), RAKBANK and Sharjah Islamic Bank. 

Global law firm, Dentons provided legal counsel to the joint lead managers. For further information click here.