Binghatti Holding Nasdaq Dubai Green Sukuk Listing
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Binghatti Holding Lists First Green Sukuk on Nasdaq Dubai, Boosting UAE’s Sustainable Finance Goals
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Published November 6, 2023, 10:58 AM PST. updated as needed.
Binghatti’s $500 Million Green Sukuk: A Landmark Listing
On November 6,2023,Nasdaq dubai welcomed the first listing of a green sukuk valued at $500 million from Binghatti Holding. These sukuks are part of Binghatti’s broader $1.5 billion sukuk issuance program and represent the company’s inaugural venture into sustainability-linked finance. The sukuks are scheduled to mature in 2029.
A Binghatti press release details the sukuk’s alignment with principles for green sukuk, ensuring proceeds are allocated to environmentally beneficial projects.
Supporting the UAE’s Climate neutrality Ambitions
The issuance and listing of these green sukuks directly contribute to the United Arab Emirates’ enterprising goal of achieving climate neutrality by 2050. The UAE has committed to meaningful investments in renewable energy and sustainable development, and this listing demonstrates a growing commitment to mobilizing capital for these initiatives. The UAE’s Net Zero by 2050 Strategic Initiative outlines the country’s roadmap for decarbonization.
This move also reinforces dubai’s position as a leading global center for sustainable finance,attracting investors seeking environmentally and socially responsible investment opportunities.
Nasdaq Dubai’s Role in Sustainable Finance
Hamed ali, CEO of the Dubai Financial Market and Nasdaq Dubai, emphasized the significance of the listing, stating it reflects increasing investor demand for sustainable financial instruments adhering to Environmental, Social, and Corporate Governance (ESG) standards.He highlighted Nasdaq Dubai’s ability to connect UAE issuers with international investors, diversifying financing options and supporting the country’s sustainable financing aspirations.
With this listing, Binghatti Group’s total value of sukuks listed on Nasdaq Dubai reaches US$1.5 billion, demonstrating the company’s confidence in the exchange. The total value of debt instrument listings on Nasdaq Dubai now exceeds $141 billion, solidifying its position as a prominent global exchange specializing in sukuk and sustainable finance.
Understanding Sukuk and Green Finance
Sukuk are Islamic bonds that comply with Sharia law. Unlike conventional bonds, they represent ownership in an asset rather than a debt obligation. Green sukuk specifically finance projects with environmental benefits, such as renewable energy, energy efficiency, and sustainable transportation.
The growth of the green sukuk market is driven by increasing global awareness of climate change and the need for sustainable investment. According to a