"Burjeel Holding" Succeeds in pricing the first unsecured sukuk issuance worth $500 million
ABU DHABI, June 25 / WAM / Burjeel Holding, the leading specialized healthcare group in the Gulf Cooperation Council countries, listed on the Abu Dhabi Securities Market, has successfully priced the first issuance of unsecured sukuks worth US$500 million with a five-year maturity due in 2031, under Regulation S, as part of its new program to issue unsecured sukuks worth US$1.5 billion.
The issuance is a historic achievement, as it is the first offering from a healthcare services provider in the Middle East and North Africa region since 2018.
The issuance witnessed an exceptional turnout from high-quality regional and international institutional investors, as the value of subscription requests reached 1.6 billion US dollars, equivalent to 3.2 times the size of the issue, which enabled Burjeel Holding to improve the pricing conditions and reduce it from the initial indicative range, which was in the middle of the 7% level, so that the sukuks were priced at a profit rate of 7.000% and a return of 7.125%, at the lowest return for a five-year issuance from an unrated private company. Within the investment grade category in the Gulf Cooperation Council countries since 2020.
The final distribution was characterized by wide geographical diversity, as international investors accounted for 61% of the total distribution, with 34% from the United Kingdom, 24% from the United States, and 3% from other international markets, in addition to a strong participation from Gulf Cooperation Council investors at 39%, which reflects the great confidence in the first sukuk issued by Burjeel, and confirms the strength of the capital markets platform in the UAE and its ability to attract long-term institutional capital.
The sukuks received a “BB+” rating from Standard & Poor’s Global Credit Ratings Agency, and a “Ba2” rating from Moody’s, which enhances the positive momentum in the regional debt capital markets and confirms the continued global institutional demand for high-quality sukuks issued by the United Arab Emirates and the Gulf Cooperation Council countries.
It is expected that the net proceeds from the offering will be used, according to the relevant offering documents, to refinance existing debt and support the group’s strategic priorities, thus enhancing its financial flexibility, diversifying its financing sources, and strengthening its long-term capital structure.
The Sukuks are expected to be issued on July 1, 2026 and listed for trading on the London Stock Exchange’s international securities market, subject to the fulfillment of customary closing conditions.
Dr. Shamsher Vayalil, Chairman of the Board of Directors and CEO of Burjeel Holding, confirmed that the strong demand for the first sukuk issuance reflects investors’ confidence in the company’s strategy, the solidity of its credit foundations, and its ability to achieve sustainable growth. It also confirms its growing credit standing globally, enhances its access to international capital markets, and supports the rising momentum of the debt markets in the UAE and the region.
He added that the success of pricing the first sukuk issue provides the company with greater financial flexibility to support the implementation of its strategic priorities while maintaining the highest levels of financial and operational discipline, which supports continued investment in the development of advanced clinical care, scientific research, medical education, digital transformation, and innovation in the health care sector supported by artificial intelligence, and contributes to building the future of health care, enabling the next generation of its services, and enhancing the UAE’s position as a global center for excellence and innovation in the health sector.
Citibank, Emirates NBD Capital, and First Abu Dhabi Bank assumed the joint global coordination of the deal, while Emirates NBD Capital and First Abu Dhabi Bank acted as sukuk structuring agents.
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Ras Al Khaimah National Bank, and Sharjah Islamic Bank also participated in managing the offering, among the group of financial institutions that supervised the implementation and success of the offering.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related
