Abu Dhabi healthcare group Burjeel launches $1.5b funding plan as it targets expansion

Abu Dhabi: Abu Dhabi healthcare provider Burjeel Holdings has set up a $1.5 billion Sukuk programme as it looks to raise funds from international capital markets and support its future expansion plans.

The Sharia-compliant bond programme, created through Burjeel Sukuk Limited, has been admitted to the London Stock Exchange International Securities Market, opening a new route for the company to access debt investors.

Sukuks are financial instruments similar to bonds but structured to comply with Islamic finance principles.

Burjeel said the programme would help diversify its sources of funding and support investment in areas including specialist medical care, research, medical education, digital transformation and artificial intelligence-based healthcare.

Burjeel Holdings Chairman and CEO Dr. Shamsheer Vayalil said: “Receiving first-time ratings from two of the world’s leading credit rating agencies is an important milestone for Burjeel Holdings and reflects the strength of our platform, our disciplined financial policy, strong corporate governance and the resilience of our operating model.”

“The establishment of our Sukuk Programme further enhances our financial flexibility and supports our strategy to diversify funding sources while maintaining prudent leverage and strong liquidity,” he added.

Burjeel said it has begun discussions with regional and international fixed-income investors over a possible first five-year senior unsecured Sukuk offering.

The company said any issuance would depend on market conditions, regulatory approvals and the release of the relevant offering documents.

The company also received its first corporate credit ratings from S&P Global Ratings and Moody’s Ratings.

S&P assigned Burjeel a ‘BB+’ issuer credit rating with a Stable outlook, while Moody’s assigned the company a Ba2 corporate family rating with a Stable outlook.