Binghatti lines up dollar sukuk after investor calls

Dubai-based luxury property developer Binghatti Holding Limited has instructed banks to arrange a series of fixed income investor calls starting Tuesday, 3 February 2026, as it prepares the ground for a benchmark-sized, five-year, US dollar-denominated sukuk offering, according to transaction details communicated to the market.

The planned issuance will take the form of a Regulation S senior unsecured sukuk under the $1.5 billion Trust Certificate Issuance Programme of Binghatti Sukuk 2 SPV Limited. Execution of the transaction will depend on market conditions following the investor outreach, a standard approach as issuers gauge appetite, pricing tolerance and geographic demand ahead of a formal launch.

Binghatti enters the market with a sub-investment-grade credit profile that remains stable. Fitch Ratings assigns the group a BB- rating with a stable outlook, while Moody’s Investors Service rates it Ba3, also with a stable outlook. Both agencies have highlighted the company’s growing scale, its focus on premium residential developments, and the supportive backdrop of Dubai’s high-end property segment, while also flagging risks linked to project concentration, execution and broader real estate cycles.

The move comes as regional property developers continue to lean on Islamic capital markets to fund expansion, refinance existing obligations and lengthen debt maturities. Sukuk structures have become a preferred route for Gulf-based issuers seeking to tap a deep pool of Shariah-compliant liquidity across the Middle East, Asia and parts of Europe, while also diversifying funding sources beyond bank loans.

Binghatti has expanded rapidly over the past few years, building a portfolio that includes branded and design-led residential towers across prime Dubai locations such as Business Bay, Downtown Dubai and Jumeirah Village Circle. The company has also gained prominence through partnerships with global luxury brands, a strategy aimed at differentiating its projects in a competitive market and attracting high-net-worth buyers from overseas.

Ratings agencies have noted that advance sales remain a central pillar of Binghatti’s business model, providing cash inflows that support construction and reduce reliance on external funding. At the same time, the group has increasingly turned to capital markets to fund land acquisitions, support development pipelines and smooth cash-flow timing mismatches inherent in large-scale real estate projects.

The planned five-year tenor reflects a broader trend among regional issuers to secure medium-term funding that balances investor demand for duration with issuer preferences for manageable refinancing risk. Benchmark-sized transactions also help build liquid yield curves, which can be useful for future fundraisings and secondary market performance.

Investor sentiment towards Gulf sukuk has remained resilient despite global interest rate uncertainty and shifting expectations around monetary policy in major economies. Strong liquidity in the region’s banking system, coupled with continued demand from dedicated Islamic funds and conventional investors seeking diversification, has supported issuance volumes and pricing stability. Real estate-linked credits, however, tend to attract closer scrutiny, particularly around leverage levels, project execution timelines and exposure to property price fluctuations.

For Binghatti, the investor calls are expected to focus on its development pipeline, sales visibility, balance sheet metrics and governance framework. Market participants typically use such sessions to assess management’s strategy, risk management practices and assumptions underpinning cash-flow forecasts. Questions are also likely to centre on how the group plans to navigate potential volatility in construction costs and demand, as well as its approach to managing refinancing needs over the medium term.

The sukuk will be issued through Binghatti Sukuk 2 SPV Limited, a bankruptcy-remote vehicle commonly used in Islamic finance structures to hold assets and issue trust certificates to investors. Senior unsecured status places the certificates on par with other unsecured obligations of the group, without specific asset security, making overall credit strength and cash-flow generation key considerations for investors.