Binghatti priced a USD 500 mn, five-year senior unsecured sukuk issuance at 8.375% (or 461 bps over US Treasuries), AGBI reports, citing a company statement. The offering was 4.4x oversubscribed, drawing a USD 2.5 bn orderbook, with foreign investors making up half of it. The notes will be listed on LSE and Nasdaq Dubai.

This marks the firm’s third major outing in the debt markets in less than a year and comes as the developer looks to move beyond individual towers into master-planned communities, with proceeds earmarked to support its growth strategy and expand its development pipeline, the developer said. Plans for the developer range from a AED 30 bn Mercedes-Benz-branded city to a AED 25 bn development in Nad Al Sheba.

No more IPO: CEO Muhammad BinGhatti has also recently confirmed the firm has hit pause on its IPO plans. By opting for the sukuk market, Binghatti is taking advantage of its strengthened balance sheet, where net income rose 95.6% y-o-y to AED 3.6 bn last year.

IN CONTEXT- Dubai is bracing for 91k residential units to be handed over in 2026. While firms like Fitch have warned of price corrections up to 15% due to this supply surge, Binghatti is doubling down on branded luxury to maintain a price premium.

ADVISORS- Our friends at Mashreq are quarterbacking the sale alongside Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, and JPMorgan as joint global coordinators.

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