Burjeel prices $500m sukuk as Gulf debt issuance gathers pace

UAE healthcare provider Burjeel Holdings has raised $500 million through its inaugural dollar sukuk after attracting more than three times that amount in investor orders, as demand for Gulf corporate debt continues to recover.

The Abu Dhabi-listed company priced the five-year sukuk with a 7 percent profit rate, after demand reached about $1.6 billion.

Investor meetings held earlier this year gauged demand for the sukuk as the healthcare group sought to diversify its funding sources and refinance existing debt.

The sukuk was rated BB+ by S&P Global Ratings and Ba2 by Moody’s Ratings.

International investors accounted for 61 percent of allocations, led by buyers from the UK and offshore US accounts, while investors from the Gulf accounted for the remaining 39 percent, Burjeel said in a statement.

Gulf borrowers have returned to international debt markets following a pause during regional tensions, with sovereigns and corporates raising billions of dollars in conventional bonds and sukuk in recent months.

Burjeel’s sukuk is expected to be listed on the International Securities Market of the London Stock Exchange on July 1.

Burjeel reported a 10 percent increase in revenues to AED5.5 billion ($1.5 billion) in 2025, while net profit rose 40 percent to AED503 million.

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Founded in 2007, Burjeel operates a network of 89 assets across the UAE, Oman and Saudi Arabia, including 20 hospitals, 41 medical centres, two physiotherapy centres, 15 pharmacies and 11 other allied services.

VPS Healthcare Holdings, led by CEO Shamsheer Vayalil, owns 70 percent of Burjeel.

International Holding Company, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the Emirati national-security adviser and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan, holds a 15 percent stake in Burjeel.

Burjeel’s shares closed at AED1.15 on the Abu Dhabi Securities Exchange on Thursday, down by about 17 percent in the year to date.