ZAWYA: UAE’s Burjeel Holdings prices debut $500mln 5-year sukuk

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Staff WriterBurjeel 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)[email protected]: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

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