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Burjeel Holdings, the Abu Dhabi-listed healthcare group, has priced its debut $500 million benchmark senior unsecured five-year sukuk at a 7% fixed rate coupon, paid semi-annually, with a 7.125% yield and a reoffer price of 99.482.
IPTs for the benchmark-sized Ijara / Murabaha structure were in the mid-7% range.
The issuance attracted a final orderbook of $1.4 billion (excluding JLM).
International investors represented 61% of the final allocation, including the UK (34%), US Offshore (24%) and other international markets (3%), alongside strong regional participation from the GCC (39%).
Burjeel Sukuk Limited is listed as the issuer with several hospitals under the group named as guarantors.
The expected rating for the Islamic bond is BB+ by S&P and Ba2 by Moody’s, in line with Burjeel’s own rating.
The healthcare group has stated that the proceeds will be deployed for refinancing and general corporate purposes.
The Regulation S Category 2 sukuk will come under Burjeel’s $1.5 billion Trust Certificate Programme, established this June, and will list on the London Stock Exchange’s International Securities Market.
(Writing by Bindu Rai, editing by Seban Scaria)
