Image: Special Arrangement
Dubai∙ Malayali health entrepreneur Dr. In Shamsheer field Chairman and CEO of a leading healthcare provider in the UAE Burjeel Holdings have gained massively in global financial markets. The company has successfully raised Rs 4,708 crore (US$ 500 million) through its maiden Islamic bond issue. The five-year bonds were issued as part of a total bond scheme of Rs 14,124 crore by Abu Dhabi Securities Exchange-listed Burjeel Holdings. These will be listed for trading on the London Stock Exchange on July 1.
This is the first Islamic bond issued by a healthcare company in the Middle East North Africa region since 2018. It also has the distinction of being the first corporate bond to be issued from the UAE after the recent regional crises and developments in the region.
The bond has been well received by global and local investors. The total investment interest available is more than three times the target amount of the company (Rs 15,066 crore). A large share of bond buyers are international investors. Global markets including UK and US account for 61 percent of the total allotment. 39 percent of the investors participated from the Gulf region. This underscores the global credibility of the UAE capital market.
Burjeel has pegged the bond’s dividend yield at seven per cent and yield at 7.125 per cent, citing strong investor interest. This is the lowest yield rate for a private corporate issuer in the Gulf region since 2020. International rating agencies S&P have given the company a ‘BB+’ rating and Moody’s has given a ‘BA2’ rating.
The proceeds will be used to settle existing liabilities and for the group’s strategic development activities, the company said. And, this capital will be used for cutting-edge therapies, medical research, artificial intelligence and technology development. Chairman of Burjeel Holdings, Dr. Shamsheer said in the field. This acquisition will give the company greater financial freedom to take healthcare to the next level, he said.
Citibank, Emirates NBD Capital and First Abu Dhabi Bank were the global coordinators for the bond issue. Leading financial institutions like Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Dubai Islamic Bank also acted as lead managers. There are 89 institutions including 20 hospitals and 41 medical centers in UAE, Oman and Saudi Arabia. Currently operating under Burjeel Holdings headed by Shamsheer Vyalil.
English Summary:
Burjeel Holdings, a prominent UAE healthcare provider led by Dr. Shamsheer Vayalil, has achieved a significant milestone in global financial markets by successfully raising 4,708 crore INR (500 million USD) through its inaugural Islamic bond issuance. This substantial fundraising underscores strong investor confidence in the company’s strategic vision and financial stability.
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