Binghatti’s sukuk tap has garnered an overwhelming response from investors, recording a 420% oversubscription. The Dubai-based real estate developer had initially planned to issue $300 million in sukuk to support its business growth and expansion plans. However, due to the high demand from investors, Binghatti decided to increase the size of the sukuk tap to $350 million.
The strong response to Binghatti’s sukuk tap is a testament to the company’s solid track record and reputation in the market. Investors have shown confidence in Binghatti’s business strategy and future prospects, leading to a significant oversubscription of the sukuk offering. The oversubscription also reflects the attractiveness of Islamic finance instruments, such as sukuk, which are compliant with Shariah principles and offer steady returns to investors.
Binghatti’s decision to increase the size of the sukuk tap to $350 million will provide the company with additional capital to fund its ambitious growth plans. The real estate developer has a number of projects in the pipeline, including residential, commercial, and hospitality developments, both in the UAE and internationally. The proceeds from the sukuk offering will enable Binghatti to accelerate the development of these projects and capitalize on new opportunities in the market.
In a statement, Muhammad Binghatti, CEO and Head of Architecture at Binghatti Holding, expressed his gratitude to investors for their strong support of the sukuk tap. He noted that the overwhelming response to the offering underscores investors’ confidence in the company’s vision and strategic direction. Binghatti also highlighted the importance of sukuk as a key financing tool for the company’s growth and expansion plans.
Islamic finance has gained momentum in recent years, with sukuk issuances becoming increasingly popular among companies looking to raise capital in a Shariah-compliant manner. Sukuk are structured like conventional bonds but are asset-backed and comply with Islamic principles, making them an attractive investment option for both Muslim and non-Muslim investors. The oversubscription of Binghatti’s sukuk tap is a clear indication of the strong demand for Islamic finance instruments in the market.
Binghatti’s successful sukuk tap is a positive development for the company and the broader Islamic finance industry. The oversubscription of the offering demonstrates the strength of Binghatti’s brand and business model, as well as the growing popularity of sukuk as a financing option. With the additional capital raised through the sukuk tap, Binghatti will be well-positioned to pursue its growth objectives and capitalize on new opportunities in the real estate market.
Overall, Binghatti’s sukuk tap has been met with overwhelming investor interest, leading to a 420% oversubscription of the offering. The company’s decision to increase the size of the sukuk tap to $350 million will provide it with the necessary capital to fund its expansion plans and accelerate the development of its projects. The strong response to the sukuk offering reflects investors’ confidence in Binghatti’s business strategy and vision, as well as the growing popularity of Islamic finance instruments in the market.
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