Abu Dhabi-based healthcare operator Burjeel Holdings has successfully entered the international Islamic debt market, raising $500 million through its first-ever five-year sukuk, a deal that drew strong investor appetite and exceeded initial expectations.
The senior unsecured sukuk was priced with a fixed profit rate of 7% payable every six months. The notes were issued at a reoffer price of 99.482, translating into a yield of 7.125%.
Market participants had initially been guided toward pricing in the mid-7% range for the benchmark-sized issuance, structured under a combination of Ijara and Murabaha principles. Demand proved robust, with the order book swelling to approximately $1.4 billion, excluding joint lead manager participation, giving the issuer ample coverage over the final transaction size.
Investor interest extended well beyond the Gulf region. International accounts secured 61% of allocations, led by investors from the United Kingdom, which accounted for 34% of the distribution. Offshore US investors received 24%, while other international buyers represented 3%. Regional investors from GCC markets took the remaining 39% of the issue.
The sukuk was issued through Burjeel Sukuk Limited, with several hospitals within the healthcare group’s network acting as guarantors.
Credit agencies are expected to assign ratings of BB+ from S&P Global Ratings and Ba2 from Moody’s, mirroring Burjeel Holdings’ corporate credit profile.
The company said funds raised through the transaction will be used to refinance existing obligations and support broader corporate requirements.
The issuance falls under Burjeel’s recently established $1.5 billion Trust Certificate Programme and is expected to be listed on the International Securities Market of the London Stock Exchange, marking a significant milestone in the healthcare provider’s capital markets journey.
