Binghatti Holding raised USD 500 mn in its debut sale of senior unsecured green sukuk, with proceeds earmarked for financing a number of green projects, according to a press release. Binghatti tapped banks to arrange the transaction earlier this week. The notes, which will be listed on Nasdaq Dubai and the London Stock Exchange, fall under the Dubai-based developer’s USD 1.5 trust certificate program.

The issuance saw strong demand: The three-year Reg S-compliant offering closed 4.3x oversubscribed, drawing over USD 2 bn in orders with international investors accounting for half the book. The senior unsecured notes priced at 7.75% — 416 bps over the three-year US Treasury — tightened from initial price thoughts of 8.125% on strong demand. This is also priced significantly higher than Aldar Investment Properties’ recent USD 290 mn raise through taps of its 2034 and 2035 at green sukuk, which saw yields of 4.89% and 4.95%, the tightest for a regional real estate issuer.

This is the second sukuk issuance for Binghatti in as many months: The firm sold USD 500 mn worth of five-year sukuk in August. The developer also closed two sukuk issuances last year, raising a total of USD 500 mn.

ADVISORS- Our friends at Mashreq are the sole green structurer, and are quarterbacking the transaction as global coordinators alongside Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, and JP Morgan. Meanwhile, Abu Dhabi Commercial Bank, Ajman Bank, Arqaam Capital, Crédit Agricole CIB, First Abu Dhabi Bank, Rakbank, Sharjah Islamic Bank and Warba Bank are serving as joint bookrunners.

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