Burjeel Holdings Courts Global Investors for Debut Dollar Sukuk Offering - Bloomberg
A Middle East healthcare provider backed by Abu Dhabi royalty is looking to raise cash from international fixed-income investors for the first time.
Abu Dhabi’s Burjeel Holdings Plc has met both global and local fund managers to sound out appetite for its potential debut dollar sukuk, according to people familiar with the matter. It’s looking to showcase the business and dispel fears about the industry following the collapse of peer NMC Health Plc six years ago.
Burjeel did not respond to multiple requests for comment. The firm provides healthcare services in the United Arab Emirates and Oman, and is growing its presence in Saudi Arabia.
The company enjoys the backing of an investment vehicle linked to Abu Dhabi’s ruling dynasty. International Holding Company, a conglomerate led by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother to the country’s president, bought a 15% stake in Burjeel ahead of the firm’s 2022 local initial public offering. Tahnoon also runs the $1 trillion Abu Dhabi Investment Authority.
Burjeel’s roadshow has given the company the opportunity to reassure investors that what happened at Abu Dhabi-based hospital operator NMC Health has no wider implications for the sector as a whole, the people said. NMC fell into administration after short seller Muddy Waters Capital LLC accused the firm of overpaying for assets, overstating cash balances and understating its debt in late 2019.
Bond and sukuk issuance from Middle East healthcare businesses is rare. The last hard currency deals were placed in 2018 by NMC, according to data compiled by Bloomberg. The restructuring of the group’s debt pile dragged on for years after the company revealed more than $4 billion of undisclosed borrowings.
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