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Clifford Chance advises on Binghatti's debut sukuk issue

1 March 2024

Clifford Chance advises on Binghatti's debut sukuk issue

Global law firm Clifford Chance has advised Binghatti Holding Limited ("Binghatti") on its issue of US$300 million ijara-murabaha sukuk, which closed on 29 February 2024.

Marking Binghatti's debut foray into the international debt capital markets, the Regulation S sukuk have a 3-year tenor and are admitted to the London Stock Exchange's International Securities Market as well as to trading on Nasdaq Dubai.

Since its inception in 2008, Binghatti has gone from strength-to-strength with a portfolio of 29 completed and fully sold projects (with a sales value of AED 3.9 billion), 16 projects under development (with an estimated project value of AED 18.6 billion) and a further 15 projects under planning (with an estimated project value of AED 12.5 billion). Although traditionally focused on the mainstream and luxury markets, Binghatti has recently expanded into uber-luxury residential property development by launching premium branded products in collaboration with Jacob & Co., Bugatti and Mercedes, which is expected to drive growth in the coming years.

The sukuk issuance was over 2x over-subscribed and was priced competitively with a 30 basis points tightening resulting from investor demand based on Binghatti's compelling investor roadshows. This was also the first real estate sukuk issuance from the MENA region in 2024.

Muhammad BinGhatti, the CEO of Binghatti stated: "We are thrilled with the tremendous success of our debut sukuk issuance, which reflects the trust and confidence investors have placed in Binghatti. This immense response demonstrates the strength of our business model and attractiveness of our investment proposition".

Stuart Ure, who led the Clifford Chance team on the transaction, commented: "We have been privileged to have partnered with the Binghatti team on this landmark transaction which marks a key strategic shift as the company enters into a new phase of growth. The success of the transaction is a testament to investor and stakeholder confidence in Binghatti's value proposition and to the tireless efforts of Binghatti's senior management".

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 psc (acting through its Islamic Banking Division), RAKBANK and Sharjah Islamic Bank.

Consistently ranked Band 1 in legal directories, Clifford Chance was awarded 15 awards at the Bonds, Loans & Sukuk Awards 2023 and 8 awards at the IFLR Middle East Awards 2023. Clifford Chance was named Banking and Finance Law Firm of the Year at The Legal 500 MENA Awards 2024, Islamic Finance News (IFN) Law Firm of The Year and IFN Banking & Finance Law Firm of The Year at the IFN Deal of the Year Awards 2023, International Law Firm of the Year at the IFLR Middle East Awards 2023, International Law Firm of the Year (Middle East) at the Middle East Legal Awards 2023, and Middle East International Law Firm of the Year at the Chambers Middle East Awards 2023