First MENA healthcare Islamic bond since 2018 secures massive international demand, driving the lowest yield for a regional private non-IG issuer since 2020.
DUBAI: Burjeel Holdings, the prominent Abu Dhabi Securities Exchange-listed super-specialty healthcare operator, has successfully priced its debut $500 million five-year senior unsecured Sukuk. The transaction marks the first Islamic bond offering from a MENA healthcare provider since 2018, registering an impressive orderbook that peaked at $1.6 billion—representing a 3.2x oversubscription from regional and international investors.
Issued under its newly established $1.5 billion Senior Unsecured Sukuk Programme, the bonds are due in 2031. High-quality global demand allowed Burjeel to tighten its initial mid-7% pricing thoughts down to a final profit rate of 7.000% and a yield of 7.125%. This achievement represents the lowest five-year yield obtained by a GCC-based private, non-investment grade corporate issuer since 2020.
The final capital allocation highlighted robust institutional trust across international borders, with global investors locking in 61% of the final allocation. This chunk was led by buyers from the United Kingdom at 34%, US Offshore accounts at 24%, and other global markets at 3%, while GCC regional investors secured the remaining 39%. Rated BB+ by S&P Global Ratings and Ba2 by Moody’s, the issuance successfully navigated recent macroeconomic changes to signal strong momentum for UAE corporate credit.
Net proceeds from the debut issuance are earmarked to optimize the Group’s long-term capital structure, refinance existing credit lines, and fuel corporate expansions. Dr. Shamsheer Vayalil, Chairman and CEO of Burjeel Holdings, noted that the overwhelming institutional response validates the group’s defensive healthcare platform and long-term trajectory.
“The strong demand for our inaugural Sukuk reflects investor recognition of our strategy, credit fundamentals, and ability to deliver sustainable growth,” Dr. Shamsheer Vayalil stated. “As we continue to invest in advanced clinical care, research, medical education, digital transformation, and AI-enabled healthcare innovation, this transaction supports our ambition to power the next generation of healthcare.”
The Sukuk is anticipated to list on the International Securities Market of the London Stock Exchange on July 1, 2026. A powerhouse banking syndicate managed the deal, with Citi, Emirates NBD Capital, and First Abu Dhabi Bank operating as Joint Global Coordinators, supported by a broad range of major UAE banks as joint lead managers.
Founded in 2007 by Dr. Shamsheer Vayalil, Burjeel Holdings has grown into an expansive, multi-brand healthcare ecosystem across the UAE, Oman, and Saudi Arabia. Operating 89 assets including 20 hospitals and 41 medical centers, the group caters to all socioeconomic segments through major brands like Burjeel, Medeor, and LLH. This landmark debt issuance represents a systemic shift for regional healthcare funding, opening alternative liquidity pipelines via Islamic capital markets to fund advanced quaternary medical infrastructure and AI diagnostics across the GCC.
