ABU DHABI: Burjeel Holdings, a prominent regional healthcare provider listed on the Abu Dhabi Securities Exchange (ADX), is planning to raise $500 million (AED 1.835 billion) through the issuance of sukuk, an Islamic bond.
The Kochi-based Lakeshore Hospital and Research Centre is also, in a way, part of Burjeel Holdings after the former has been acquired by VPS Healthcare group in 2016. Dr Shamsheer Vayalil, the founder and chairman of Burjeel Holdings is also the promoter of VPS Healthcare.
According to a document on management discussion and analysis, the Abu Dhabi-headquartered Burjeel Holdings is working on plans to optimise its debt structure, reduce financing costs, and extend debt tenures through various financial instruments.
However, the timing of the sukuk issuance and the entities managing the transaction have yet to be disclosed.
The sukuk issuance will require shareholder approval before proceeding, and its timing will depend on market conditions. Under the proposed plan, half of the funds raised – $250 million (AED918 million) – will be allocated towards repaying a loan from Dubai Islamic Bank (DIB).
The remaining amount will be primarily reserved for supporting the company’s mid-term growth strategy.
Burjeel Holdings has been expanding its footprint in specialised healthcare services, with investments in oncology, transplants, fertility treatments, and advanced medical technologies. The management discussion paper highlights how these initiatives have broadened access to specialised care for a growing patient base.
Loans and borrowings
As of December 2024, the group’s total loans and borrowings stood at AED1.208 billion, marking a decline from AED1.444 billion recorded a year earlier. Meanwhile, the company’s net worth rose to AED1.842 billion from AE 1.557 billion in the previous year.
However, the company’s net debt at the end of 2024 was AED970 million, according to its financial records.
Burjeel Holdings reported a net profit of AED450 million for 2024, which was lower than the AED525 million posted in the prior year, despite generating higher revenue of AED5.010 billion compared with AED4.525 billion in 2023.
Share buyback
In a strategic move, the company’s board of directors has authorised management to explore a share buyback program of up to 10 per cent of the group’s share capital.
The management stated that this initiative reflects the board’s confidence in Burjeel’s long-term growth potential and aligns with its strategy to optimise capital structure and enhance shareholder value.
Burjeel Holdings, which launched its initial public offering (IPO) in October 2022 at an issue price of AED2 per share, saw its stock peak at AED 3.55 on November 26, 2023. However, since February 12, 2025, the share price has remained below its IPO level, hitting a low of AED 1.34 on March 10 before closing at AED 1.47 on March 24.
Commenting on the company’s ongoing expansion, CEO John Sunil said that Burjeel Holdings has strengthened specialised healthcare services through the establishment of new clinics, day surgery centres, and physiotherapy facilities across the UAE and Saudi Arabia. The group has also formed strategic alliances to enhance its service offerings.
The launch of the Burjeel Cancer Institute and OncoHelix-CoLab, the UAE’s first molecular diagnostics facility, underscores the company’s commitment to medical innovation. The group continues to prioritise investments in oncology, transplants, fertility, and advanced medical technologies to meet the growing demand for specialised healthcare services.