Post by : Badri Ariffin

Burjeel Holdings, a prominent super-specialty healthcare organization listed on the Abu Dhabi Securities Exchange, has made headlines by pricing its inaugural US$500 million Regulation S senior unsecured Sukuk, set to mature in 2031. This issuance forms part of its newly initiated US$1.5 billion Senior Unsecured Sukuk Programme.

Robust Demand Boosts Oversubscription

The debut Sukuk garnered considerable interest from both local and global investors, reaching an orderbook peak of US$1.6 billion, resulting in a remarkable 3.2 times oversubscription.

The strong demand allowed Burjeel Holdings to enhance pricing from the initial guidance, ultimately pricing the Sukuk at a profit rate of 7.000 percent and a yield of 7.125 percent. This achievement marks the lowest five-year yield secured by a GCC-based non-investment-grade corporate issuer since 2020.

Diverse Investor Participation

The final allocation showcased a wide-ranging investor base across various regions. International entities secured 61 percent of the allocation, with 34 percent from the UK, 24 percent from US offshore markets, and 3 percent from additional international locales.

The remaining 39 percent was distributed among investors from GCC nations. Such robust participation reflects growing confidence in Burjeel Holdings and highlights ongoing interest in opportunities within the UAE's capital market.

Investment Ratings Boost Trust

The Sukuk has garnered a BB+ rating from S&P Global Ratings, alongside a Ba2 rating from Moody's Ratings. These ratings, combined with investor enthusiasm, emphasize the sustained institutional demand for high-quality issuers within the UAE and the broader GCC.

Strategic Use of Funds

Burjeel Holdings has stated that net proceeds from the Sukuk will adhere to the uses outlined in the offering documents, including refinancing existing obligations and advancing the company’s long-term strategic goals.

This transaction is anticipated to enhance the Group’s financial agility, diversify its funding avenues, and bolster its overall capital structure.

CEO Emphasizes Global Investor Confidence

Dr. Shamsheer Vayalil, Chairman and CEO of Burjeel Holdings, commented, “The enthusiastic interest in our debut Sukuk is a testament to the recognition of our strategy, credit fundamentals, and sustainable growth. The global nature of the demand illustrates our credit story's appeal and strengthens our access to international capital markets, while positively contributing to momentum in the UAE and regional debt markets.”

He added, “The successful pricing of our inaugural Sukuk provides us with enhanced financial flexibility, allowing us to pursue our strategic priorities while maintaining operational discipline. As we continue to invest in state-of-the-art clinical care, research, and innovation, this transaction supports our vision for the future of healthcare.”

Anticipated Listing on London Stock Exchange

The Sukuk is projected to be listed on July 1, 2026, and will be admitted for trading on the International Securities Market of the London Stock Exchange, subject to standard closing conditions.

Key Financial Institutions Involved

Citibank, Emirates NBD Capital, and First Abu Dhabi Bank acted as Joint Global Coordinators for this transaction, while Emirates NBD Capital and First Abu Dhabi Bank also functioned as Sukuk Structuring Agents.

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, RAKBANK, and Sharjah Islamic Bank participated as Joint Lead Managers and Bookrunners.

What is Burjeel Holdings’ new Sukuk offering?

Burjeel Holdings has priced its first US$500 million senior unsecured Sukuk due in 2031 under its US$1.5 billion Sukuk Programme.

How much investor demand did Burjeel’s Sukuk receive?

The Sukuk drew US$1.6 billion in orders, leading to a 3.2 times oversubscribed orderbook.

What profit rate was set for the Sukuk?

The Sukuk was ultimately priced at a profit rate of 7.000 percent and a yield of 7.125 percent.

How were investors distributed geographically?

61 percent of the allocation went to international investors, while GCC stakeholders accounted for 39 percent.

What will Burjeel use the Sukuk proceeds for?

The proceeds will contribute to refinancing existing debt and facilitating the company's strategic growth initiatives.

When will the Sukuk be listed?

The Sukuk is expected to debut on the International Securities Market of the London Stock Exchange on July 1, 2026.

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