Burjeel Raises $500 Million Through Debut Sukuk to Strengthen Long-Term Funding

Abu Dhabi | EcoPulse24

Burjeel Holdings has successfully raised USD 500 million through its inaugural international Sukuk issuance, marking a significant milestone in the UAE healthcare group's capital markets strategy as it broadens access to long-term financing beyond traditional bank lending.

The five-year senior unsecured Sukuk, issued under Burjeel's USD 1.5 billion Trust Certificate Issuance Programme, was completed on 1 July and has been admitted to trading on the International Securities Market of the London Stock Exchange, providing the Abu Dhabi-listed healthcare operator with greater financial flexibility as it pursues its long-term growth strategy.

Burjeel expands funding sources through international debt markets

The debut Sukuk represents Burjeel's first international debt issuance and forms part of a broader strategy to diversify its funding base while strengthening its balance sheet.

The Sukuk carries a 7.000% profit rate and was priced to yield 7.125%, reflecting prevailing market conditions for regional corporate issuers. It received a BB+ credit rating from S&P Global Ratings and a Ba2 rating from Moody's Ratings, positioning the issuance within the upper tier of non-investment-grade corporate debt.

According to the company, proceeds from the transaction will primarily be used to refinance existing bank facilities while supporting strategic corporate priorities.

Refinancing strengthens financial flexibility

Replacing part of its bank financing with longer-term capital market funding enables Burjeel to diversify its sources of liquidity and reduce reliance on traditional lending channels.

The transaction also strengthens the group's capital structure by extending funding maturity while providing additional financial flexibility to support future investments and expansion across its healthcare platform.

Healthcare operators across the Gulf have increasingly turned to debt capital markets in recent years as regional demand for healthcare services continues to expand alongside population growth and investment in advanced medical infrastructure.

London listing broadens international investor access

Admission of the Sukuk to trading on the London Stock Exchange's International Securities Market provides international investors with access to the security while reinforcing London's role as a major listing venue for Gulf debt issuances.

The issuance also highlights the continued development of the global Sukuk market, where issuers from the GCC increasingly access international pools of capital alongside conventional financing channels.

By issuing through a Regulation S structure, Burjeel targeted international investors outside the United States, consistent with many recent Gulf corporate Sukuk transactions.

Burjeel continues expanding regional healthcare platform

Founded in 2007, Burjeel Holdings has developed one of the GCC's largest integrated healthcare networks, operating 89 healthcare assets across the UAE, Oman and Saudi Arabia.

Its portfolio includes 20 hospitals, 41 medical centers, physiotherapy facilities, pharmacies and complementary healthcare services, positioning the company among the region's largest private healthcare providers.

The successful completion of the Sukuk provides additional financial capacity as Burjeel continues investing across its regional healthcare platform.

Sukuk Overview

The following table summarizes the key terms of the issuance.

EcoPulse24 Analysis

Burjeel's inaugural Sukuk illustrates how GCC healthcare companies are increasingly embracing international capital markets to finance long-term growth. Rather than relying exclusively on syndicated bank lending, large regional healthcare operators are diversifying funding sources through publicly traded debt instruments that provide greater flexibility over financing costs, maturity profiles and investor diversification.

The transaction also reflects the continued expansion of Islamic capital markets beyond sovereign issuers. Corporate Sukuk have become an increasingly important financing tool for companies seeking long-term capital while appealing to both regional and international investors. The successful placement of a USD 500 million issuance demonstrates sustained demand for GCC corporate credit despite a higher global interest-rate environment.

From a strategic perspective, refinancing existing bank facilities through longer-dated Sukuk improves financial resilience by reducing refinancing concentration risk and broadening the investor base. For companies operating capital-intensive healthcare networks, stable long-term funding is particularly important as hospitals, specialist facilities and medical technology investments require extended investment horizons before generating returns.

The London listing further reinforces the internationalisation of Gulf capital markets. While regional exchanges continue to develop rapidly, London remains an important gateway for international fixed-income investors seeking exposure to GCC issuers. This dual connection between Gulf corporate growth and global capital markets is likely to become increasingly common as regional companies continue expanding internationally.

More broadly, Burjeel's financing strategy reflects a structural shift across the GCC economy. As healthcare, infrastructure, technology and industrial companies mature, access to diversified funding sources is becoming as strategically important as operational growth itself. Companies capable of efficiently combining equity, bank financing and debt capital markets are likely to enjoy greater financial flexibility and stronger resilience throughout future economic cycles.