Burjeel Holdings lists $500m sukuk on London Stock Exchange after 3.2x demand
The Gulf healthcare group's first international bond sale drew a $1.6 billion orderbook, with 61 percent of the allocation going to international investors.
Burjeel Holdings’ first sukuk began trading on the London Stock Exchange on Friday, admitted to the exchange’s International Securities Market. A Market Open Ceremony marked the start of trading.
The $500 million issuance is the Abu Dhabi-based healthcare group’s first fundraising in the international debt capital markets. It sits under a $1.5 billion Senior Unsecured Sukuk Programme.
A $1.6 billion orderbook
Demand from regional and international institutional investors produced an orderbook of $1.6 billion, or 3.2 times the size of the deal. International investors took 61 percent of the final allocation.
Burjeel said the participation reflected confidence in its business model, financial performance and long-term expansion strategy. Two ratings agencies assigned the notes investment-grade-adjacent grades in the double-B band: S&P Global Ratings at BB+ and Moody’s Ratings at Ba2. The company said the ratings spoke to its business fundamentals, operating model and growth prospects.
It is the first sukuk from a healthcare provider in the Middle East and North Africa since 2018, a gap of several years in a sector that has generally funded expansion through bank debt and equity.
Where the money goes
Proceeds will refinance existing debt and fund expansion. Burjeel said the capital will accelerate spending on advanced clinical care, medical research, healthcare education, digital transformation and AI-enabled innovation, and support the widening of specialized medical services across the region. The group is building out its hospital and clinic network while investing in newer medical technology.
Dr. Shamsheer Vayalil, Burjeel’s chairman and chief executive, called the listing an important milestone in the company’s growth journey and said the ceremony marked an important chapter for the group. He said the transaction reinforced a commitment to pairing clinical work with long-term financial strength, and gave the company a firmer base for investing in healthcare professionals, specialized services, research, education and innovation for the communities it serves.
Sheikh Khalid bin Saud Al Qasimi, Deputy Chief of Mission at the UAE Embassy in the United Kingdom, attended the ceremony in London, along with Vayalil, members of the Burjeel leadership team and representatives of the exchange.
For a hospital operator, the exercise is less about the $500 million than about the price of the next $500 million. A listed, rated sukuk establishes a public benchmark offshore, which gives lenders and investors a reference point when the group returns to the market. It also shifts part of the funding base away from the relationship banks that have traditionally carried Gulf healthcare expansion. Burjeel said the issuance strengthened its financial flexibility; the test will be how quickly the proceeds turn into beds, specialists and revenue outside its home market.
