Dentons advises the joint lead managers on Binghatti’s debut issue of ijara-murabaha sukuk

Dentons has advised the joint lead managers on Binghatti Holding Limited’s (Binghatti) issuance of USD300 million trust certificates due 2027 issued by Binghatti Sukuk SPC Limited, a special purpose vehicle issuer incorporated in the Dubai International Financial Centre. The transaction was completed on 29 February 2024 with the participation of international and regional joint lead managers.

The issuance was rated B+ by Fitch. It was admitted to trading on the London Stock Exchange’s International Securities Market as well as trading on Nasdaq Dubai. The issuance was offered to sophisticated investors, outside the US, in reliance on Regulation S under the US Securities Act of 1933. The issuance marked Binghatti’s debut foray into the international debt capital markets and was also the first real estate sukuk issuance from the MENA region in 2024.

Debt Capital Markets partner Alex Roussos, based in Dentons‘ Dubai office, commented, “We are delighted to have supported the joint lead managers and Binghatti Holding on this milestone transaction in the company’s history. UAE real estate sector issuers continue to successfully access international capital markets, which is testament to the strength and depth of the markets and of this specific industry. We are also witnessing the continuous evolution of principles and drafting techniques associated with the Shariah structures we are putting in place for these transactions, particularly Ijara structures, which requires close engagement and collaboration with the Shariah teams and the scholars throughout”.

The Dentons team was led by partner Alex Roussos, with assistance from senior legal consultant Katie Phillips, senior associates Sana Siddiqui and Brian O’Leary, and paralegals Joseph Hunt and Jasim Alzaabi.