Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Burjeel Holdings marked the admission of its $500 million Sukuk to the International Securities Market of the London Stock Exchange with a market-opening ceremony on Friday.
The ceremony was held at the LSE in the presence of Sheikh Khalid bin Saud Al Qasimi, Deputy Chief of Mission at the UAE Embassy in the UK; Dr. Shamsheer Vayalil, Chairman and CEO of Burjeel Holdings; other members of the company’s leadership; and representatives of the exchange.
The market opening followed the completion of Burjeel Holdings’ inaugural sukuk under its $1.5 billion Senior Unsecured Sukuk Programme, marking the group’s first entry into the international debt capital markets.
Speaking to Aletihad on the occasion, Dr. Vayalil said the capital raised would support the expansion of the group’s healthcare footprint in key growth markets, including the UAE and Saudi Arabia, while strengthening its advanced clinical and specialty-care capabilities.
“The sukuk also supports our ability to accelerate innovation and future readiness, including investment in AI, digital transformation, medical education and research,” Dr. Vayalil said.
He said the strategic priorities supported by the issuance were focused on Burjeel’s next phase of disciplined growth and on investments aimed at improving patient outcomes.
More broadly, the sukuk provides the company with a diversified funding platform that complements traditional bank financing and gives it greater flexibility to pursue long-term growth while maintaining financial discipline, he added.
Asked about the advantages of sukuk financing over conventional bank loans, Dr. Vayalil said it gave the group access to a wider base of regional and international institutional investors and reduced its reliance on traditional bank funding.
“It also enhances financial flexibility by enabling longer-term funding that is well aligned with our growth strategy and investment horizon,” he said.
Establishing the programme would also strengthen Burjeel’s presence in the international debt capital markets, broaden its investor base and support a more balanced long-term capital structure, he added.
The five-year Sukuk, which is due in 2031, represents the first $500 million issuance under the $1.5 billion programme. Dr. Vayalil said the remaining $1 billion capacity was not tied to a fixed timeline or deadline.
Any future issuance would depend on the group’s funding requirements, strategic priorities, market conditions, investor appetite and applicable regulatory considerations, he said.
“Our focus remains on maintaining financial discipline while using the programme as a flexible platform to support Burjeel’s long-term growth,” Dr. Vayalil said.
Burjeel Holdings has also received its first corporate credit ratings from international agencies. S&P Global Ratings assigned the company a BB+ issuer credit rating with a Stable Outlook, while Moody’s Ratings assigned it a Ba2 corporate family rating, also with a Stable Outlook.
The ratings also formed the basis for the ratings assigned to the sukuk, Dr. Vayalil said.
The issuance attracted a $1.6 billion order book and was 3.2 times oversubscribed, with international investors accounting for 61% of the final allocation. According to the company, it was the first Sukuk issued by a Middle East and North Africa healthcare provider since 2018.
The proceeds will also be used to refinance existing debt.
“Today’s ceremony marks an important chapter in Burjeel Holdings’ journey. It reflects how far we have come as an organisation and reinforces our commitment to building a healthcare platform that combines clinical excellence with long-term financial strength,” Dr. Vayalil said at the ceremony.
