Burjeel Holdings Launches $1.5 Billion Sukuk Program for Long-Term Flexible Financing

Abu Dhabi | EcoPulse24

The Board of Directors of Burjeel Holdings has approved the establishment of a multi-tranche program for issuing senior unsecured sukuk with a total value of up to $1.5 billion. This move reflects the group’s aim to strengthen its financial flexibility and diversify liquidity sources over the medium and long term.

According to the disclosure to the Abu Dhabi Securities Exchange, the program entails the creation of a special purpose vehicle to serve as the sukuk issuer. The issuances may be in an unlimited number of tranches and in any currency, provided that the aggregate outstanding nominal value does not exceed the program’s approved ceiling.

The company clarified that the sukuk will be non-convertible into shares, senior unsecured, and pari passu with other unsecured and unsubordinated obligations of the company. The sukuk will have a fixed maturity and may be offered to qualified investors both within the UAE and internationally.

In a separate resolution, the board approved submitting a recommendation to shareholders to amend the company’s articles to allow for the merger of the roles of Chairman and CEO. This proposal will be put to a vote according to the company’s established procedures.

EcoPulse24 Analysis:
Approval of such a sizable sukuk program gives Burjeel Holdings a flexible financing platform that can be activated in stages, aligning issuances with liquidity needs and market timing without immediate budgetary pressure. The choice of senior unsecured sukuk signals management’s confidence in its creditworthiness and in qualified investor appetite. The multi-currency, multi-tranche structure reflects an intent to broaden the investor base regionally and internationally. Meanwhile, the proposal to merge the roles of Chairman and CEO has governance implications that warrant close monitoring due to its potential impact on decision-making and institutional balance within the company.