Burjeel Holdings’ $500m debut Sukuk draws $1.6b orders

It allowed the Dubai-based firm to tighten pricing.

Burjeel Holdings PLC's inaugural $500m Sukuk programme drew an order book that peaked at $1.6b, representing 3.2x oversubscription.

The demand allowed Burjeel to tighten pricing from initial guidance in the mid-7% area down to a final profit rate of 7% and a yield of 7.125%.

The company said this is the lowest five-year yield achieved by a Gulf Cooperation Council-based private non-investment grade corporate issuer since 2020.

"The successful pricing of our debut Sukuk gives us greater financial flexibility to advance our strategic priorities whilst maintaining discipline across the business," Shamsheer Vayalil, Chairman and CEO of Burjeel Holdings, said. 

The oversubscription was matched by geographic diversification as international investors accounted for 61% of the final allocation, split between the United Kingdom (34%), US offshore investors (24%), and other international markets (3%).

GCC-based investors made up the remaining 39%.

The Sukuk, issued under a newly established $1.5b Senior Unsecured Sukuk Programme, carries ratings of BB+ from S&P Global Ratings and Ba2 from Moody's Ratings.

It is the first offering from a MENA healthcare provider since 2018, and is expected to list on 1 July 1 on the International Securities Market of the London Stock Exchange.