Burjeel Holdings Prices $500 Million Sukuk, Marks First MENA Healthcare Issuance Since 2018
Burjeel Holdings, a leading GCC super-specialty healthcare provider listed on the Abu Dhabi Securities Exchange (ADX), has successfully priced its inaugural USD 500 million Regulation S five-year senior unsecured Sukuk due in 2031 under its newly established USD 1.5 billion Senior Unsecured Sukuk Programme.
The landmark issuance attracted strong interest from both international and regional investors, with the order book peaking at USD 1.6 billion, making the offering 3.2 times oversubscribed.
Robust investor demand enabled Burjeel Holdings to tighten pricing from the initial guidance in the mid-7% range. The Sukuk was ultimately priced with a 7.000% profit rate and a 7.125% yield, representing the lowest five-year yield achieved by a GCC-based private non-investment-grade corporate issuer since 2020.
International investors accounted for 61% of the final allocation, led by UK investors (34%) and US offshore investors (24%), while investors from the GCC represented the remaining 39%, underscoring strong confidence in both Burjeel Holdings and the UAE's capital markets.
The transaction is rated BB+ by S&P Global Ratings and Ba2 by Moody's Ratings. It also marks the first Sukuk issuance by a MENA healthcare provider since 2018 and the first UAE corporate Sukuk offering following recent regional developments.
Burjeel Holdings said the net proceeds from the issuance will be utilised in accordance with the offering documents, including refinancing existing debt and supporting the Group's long-term strategic priorities. The funding is expected to strengthen the company's financial flexibility and optimise its capital structure.
Commenting on the successful issuance, Dr. Shamsheer Vayalil, Chairman and CEO of Burjeel Holdings, said the strong investor response reflects confidence in the Group's business strategy, credit profile and sustainable growth prospects.
"The strong demand for our inaugural Sukuk reflects investor recognition of Burjeel's strategy, credit fundamentals, and ability to deliver sustainable growth. With strong international participation, this transaction broadens our access to global capital markets and provides greater financial flexibility to advance our strategic priorities, including investments in advanced clinical care, research, medical education, and AI-enabled healthcare innovation, as we work to power the next generation of healthcare," he said.
The Sukuk will be admitted for trading on the London Stock Exchange's International Securities Market, subject to customary closing conditions.
The transaction was led by Citi, Emirates NBD Capital, and First Abu Dhabi Bank (FAB) as Joint Global Coordinators. Emirates NBD Capital and FAB also served as Sukuk Structuring Agents, while Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Dubai Islamic Bank, RAKBANK, and Sharjah Islamic Bank acted as Joint Lead Managers and Bookrunners.
