Binghatti Holding will repay its sukuk maturing in February 2027, the company’s management said, as the developer sought to address market concerns over its liquidity.
Speaking at a briefing for journalists following the release of its nine-month results, chairman Muhammad BinGhatti said the company has both the means and the intention to repay its $500 million sukuk when it matures in February 2027.
“Are we able to? Yes, we are. Are we willing to? Yes, we are,” he said.
In August, Moody’s Ratings placed Binghatti Holding’s ratings on review for downgrade, citing a deterioration in its liquidity profile and uncertainty surrounding the timing and generation of cash flows over the next 12 to 18 months.
The Binghatti chairman said the company had never defaulted on any borrowing in its history and that its commitment to meeting its obligations “will never change”, even if regional conflict returns.
He pointed to a sevenfold increase in corporate cash to Dh2.7 billion in the three months to September. Of this amount, Dh2.2 billion is held in a Wakala deposit, nine times the level recorded in June. Executives said the corporate cash balance exceeds the amount required to repay the sukuk.
Last week, Binghatti Holding reported that its net profit for the nine months to September rose 65 per cent year-on-year to Dh4.4 billion, already exceeding the group’s full-year 2025 net profit of Dh3.6 billion. Revenue increased 66 per cent to Dh14.9 billion as construction advanced across its portfolio, while sales rose 11 per cent to Dh14.2 billion. Total equity increased to Dh11.2 billion from Dh6.8 billion at the end of 2025.
The chairman also pointed out that the company was paying down bank debt ahead of schedule. It had settled a Dh350 million loan before maturity, while Muhammad said it was in talks with other lenders to repay almost Dh1 billion early.
He added that the dip in corporate cash in June reflected timing, as the company had completed a land acquisition and was waiting to draw down escrow funds.
He said the company avoids using escrow balances until late in a project’s life, which made its liquidity position appear weaker than it actually was.
Binghatti’s total bank balances stood at Dh12.4 billion, exceeding its total borrowings of Dh12.2 billion. The company also reported generating Dh5.4 billion in operating cash before working capital adjustments during the nine-month period. Receivables and contract assets due from buyers totalled Dh4.7 billion.
Binghatti completed five projects during the first nine months of the year, handing over approximately 2,600 units. It expects to complete eight more projects, comprising about 6,400 units, by year-end, including Binghatti Hills.
Source: Khaleej Times