Dubai real estate developer Binghatti Holding, rated Ba3 by Moody’s and BB- by Fitch (both stable), priced its USD 500mln Reg S senior unsecured three-year inaugural green sukuk on par, with a 7.75% coupon rate.
The price was tightened from IPTs in the 8.125% area for the benchmark-sized sukuk. The issuance has a short first coupon, with a settlement date of October 1. Final books were in excess of USD 2 billion.
Following an amendment in the date, the sukuk maturity has been set for July 2, 2029, and coupon dates of January 2 and July 2. The Ijarah/Murabaha structure has an expected issue rating of BB- by Fitch, with a listing on Nasdaq Dubai and the London Stock Exchange’s International Securities Market.
The sukuk comes under Binghatti Sukuk 2 SPV Limited’s USD 1.5 billion Trust Certificate Issuance Programme. This is Binghatti’s second sukuk under two months, following the debut of a USD 500 million 5-year senior unsecured sukuk on the London Stock Exchange in August.
Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, JP Morgan and Mashreq are Joint Global Coordinators on the sukuk and, together with Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, Crédit Agricole CIB, First Abu Dhabi Bank, RAKBANK, Sharjah Islamic Bank and Warba Bank, were appointed Joint Lead Managers and Joint Bookrunners. The Oslo-headquartered DNV issued a Second Party Opinion on Binghatti’s Green Financing Framework.
