Burjeel Holdings issues US$500M debut sukuk to fund healthcare expansion

UAE—Burjeel Holdings, one of the GCC’s leading super-specialty healthcare providers listed on the Abu Dhabi Securities Exchange, has successfully priced its inaugural US$500 million senior unsecured Sukuk under Regulation S.

The five-year Islamic bond, which matures in 2031, marks the first issuance under the group’s newly established US$1.5 billion Senior Unsecured Sukuk Programme.

Strong investor appetite boosts pricing

The transaction drew robust interest from both regional and international investors, with the orderbook reaching approximately US$1.6 billion, making the offering about 3.2 times oversubscribed.

Strong demand enabled Burjeel to tighten pricing from the initial guidance in the mid-7% range before setting the Sukuk at a 7.000% profit rate and a 7.125% yield.

According to the company, the transaction achieved the lowest five-year yield secured by a GCC-based private non-investment-grade corporate issuer since 2020.

The issuance also represents the first Sukuk by a healthcare provider in the Middle East and North Africa since 2018, reflecting renewed investor confidence in the regional healthcare sector and debt capital markets.

International investors received 61% of the final allocation, led by buyers from the United Kingdom (34%) and US offshore investors (24%), while GCC-based investors accounted for the remaining 39%.

The broad geographic participation highlights growing confidence in Burjeel’s business model and the UAE’s capital markets.

Funding growth and refinancing

Burjeel plans to use the net proceeds in line with the offering documents, including refinancing existing debt while supporting the group’s long-term strategic priorities.

The funding is expected to strengthen the company’s financial flexibility and capital structure as it continues to invest in advanced clinical services, research, medical education, and artificial intelligence-enabled healthcare solutions.

The Sukuk carries corporate ratings of BB+ from S&P Global Ratings and Ba2 from Moody’s Ratings.

These first-time ratings were assigned only days before the issuance, alongside the launch of the US$1.5 billion Sukuk programme, providing the company with a flexible Shariah-compliant platform to access international debt markets.

Commenting on the transaction, Chairman and CEO Dr. Shamsheer Vayalil said the strong investor response reflects confidence in Burjeel’s strategy, financial fundamentals and long-term growth prospects.

He added that the successful issuance expands the company’s access to global capital markets while providing additional flexibility to invest in advanced healthcare services, research, medical education and AI-driven innovation.

Recent developments support expansion

The Sukuk comes shortly after Burjeel established its inaugural US$1.5 billion programme through Burjeel Sukuk Limited, a special purpose vehicle created to facilitate future issuances.

The programme has been admitted to trading on the London Stock Exchange’s International Securities Market, strengthening the company’s ability to diversify its funding sources and support future expansion.

The financing also follows a solid start to 2026 for the healthcare group.

In its first-quarter financial results, Burjeel reported revenue of AED 1.3 billion (US$354 million), EBITDA of AED 201 million (US$55 million), and net profit of AED 57 million (US$15.5 million), supported by higher patient volumes, improved operating efficiency, and continued investment in specialized healthcare services.

Citi, Emirates NBD Capital and First Abu Dhabi Bank served as Joint Global Coordinators for the transaction.

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