ABU DHABI (ALETIHAD)

Burjeel Holdings has successfully priced its inaugural $500 million Regulation S five-year senior unsecured sukuk offering due 2031 under its newly established $1.5 billion Senior Unsecured Sukuk Programme.

The Abu Dhabi Securities Exchange-listed healthcare group said the offering attracted strong demand from international and regional investors, with the orderbook peaking at $1.6 billion, representing 3.2 times oversubscription.

The strength of the orderbook enabled Burjeel to tighten pricing from initial price thoughts in the mid-7% area. The sukuk was priced at a 7.000% profit rate and a yield of 7.125%, which the company said represented the lowest five-year yield by a GCC-based private non-investment grade corporate issuer since 2020.

Final allocation was diversified across geographies, with international investors representing 61% of the final allocation. Investors from the United Kingdom accounted for 34%, US Offshore investors 24%, and other international markets 3%, while GCC investors accounted for 39%.

Burjeel said the sukuk was rated BB+ by S&P Global Ratings and Ba2 by Moody’s Ratings. The transaction also marks the first offering from a MENA healthcare provider since 2018 and the first UAE corporate offering since recent regional developments.

Net proceeds from the offering are expected to be used in line with the relevant offering documents, including refinancing existing debt and supporting the group’s strategic priorities. The company said the transaction enhances its financial flexibility, diversifies its funding sources, and further strengthens its long-term capital structure.

Dr Shamsheer Vayalil, Chairman and CEO of Burjeel Holdings, said: “The strong demand for our inaugural Sukuk reflects investor recognition of our strategy, credit fundamentals and ability to deliver sustainable growth. With the majority of demand coming from international investors, this landmark transaction demonstrates the global appeal of Burjeel's credit story, broadens our access to international capital markets and contributes to positive momentum in the UAE and regional debt capital markets.”

The sukuk is expected to be listed on July 1, 2026, and admitted to trading on the International Securities Market of the London Stock Exchange, subject to customary closing conditions.

Citi, Emirates NBD Capital, and First Abu Dhabi Bank acted as Joint Global Coordinators. Emirates NBD Capital and First Abu Dhabi Bank also acted as Sukuk Structuring Agents. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, RAKBANK, and Sharjah Islamic Bank acted as Joint Lead Managers and Bookrunners.