Post by : Bianca
Haleem
Burjeel Holdings, a prominent super-specialty healthcare provider in the GCC, has successfully launched its inaugural US$500 million senior unsecured Sukuk, maturing in 2031. This issuance is part of the company’s newly formed US$1.5 billion Senior Unsecured Sukuk Programme and was officially listed on the Abu Dhabi Securities Exchange.
Exceptional Investor Engagement
This inaugural Sukuk drew extensive interest, amassing a total order book of US$1.6 billion, leading to an oversubscription rate of 3.2 times.
Due to the heightened demand, Burjeel Holdings was able to adjust its pricing below the initial mid-7% guidance. Ultimately, the Sukuk was priced at a profit rate of 7.000%, with a yield set at 7.125%. This achievement marks the lowest yield for a five-year Sukuk by a GCC private non-investment-grade issuer since 2020.
Diverse Global Participation
The allocation featured a mix of investors from around the globe, with international participants comprising 61% of total allocations. Of these, 34% were from the UK, 24% from US offshore markets, and 3% from various other international locations.
The remaining 39% of allocations were from GCC investors, underscoring considerable confidence in Burjeel Holdings amid investor enthusiasm for opportunities within the UAE capital market.
Supportive Ratings Boost Confidence
The Sukuk garnered a BB+ rating from S&P Global Ratings and a Ba2 rating from Moody’s, reinforcing robust institutional interest in quality issuers across the UAE and broader GCC.
Proceeds to Enhance Strategic Goals
The proceeds from this Sukuk will adhere to outlined objectives, including refinancing existing debt and advancing the company’s strategic initiatives.
This transaction aims to enhance the Group's financial agility, broaden funding sources, and bolster its long-term capital framework.
CEO Emphasizes Global Trust
Dr. Shamsheer Vayalil, Chairman and CEO, remarked, “The enthusiastic response to our inaugural Sukuk showcases investors’ acknowledgment of our strategic direction and credit strength. The international component of the demand illustrates a global resonance for Burjeel's financial narrative and enhances our reach in capital markets, contributing positively to the debt market's momentum in the UAE and nearby regions.
“This successful pricing allows us to bolster our financial capabilities to pursue key strategic goals while upholding our operational discipline. As we invest in innovative healthcare advancements, this Sukuk supports our vision of the future of healthcare.”
Anticipation of Listing on London Stock Exchange
The Sukuk is anticipated to commence trading on the International Securities Market of the London Stock Exchange on July 1, 2026, pending the usual closing conditions.
Key Financial Institutions are Involved
Citibank, Emirates NBD Capital, and First Abu Dhabi Bank were appointed as Joint Global Coordinators for this strategic transaction.
They also served as Sukuk Structuring Agents, with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, RAKBANK, and Sharjah Islamic Bank taking roles as Joint Lead Managers and Bookrunners.
Overview of Burjeel Holdings’ New Sukuk Offering
Burjeel Holdings has announced a US$500 million senior unsecured Sukuk due in 2031 as part of its US$1.5 billion Sukuk Programme.
Magnitude of Investor Demand
The Sukuk garnered total orders amounting to US$1.6 billion, leading to a substantial 3.2 times oversubscription.
Established Profit Rate for the Sukuk
It is priced at a profit rate of 7.000% alongside a yield of 7.125%.
Geographical Distribution of Investors
61% of allocations went to international investors, while the other 39% was allocated to those from GCC countries.
Allocated Uses of Sukuk Proceeds
Proceeds will fund debt refinancing and support Burjeel's strategic priorities.
Listing Timeline for Sukuk
The listing is set for the International Securities Market of the London Stock Exchange on July 1, 2026.
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