The Scoop
Burjeel Holdings postponed a planned $1.5 billion Islamic bond issue over the Iran war, pivoting from preparing to close the deal in London to ensuring its Gulf emergency rooms were well stocked in the early days of the conflict, the CEO of the Abu Dhabi-listed hospital group told Semafor.
Proceeds from the issuance were, in part, earmarked to fund an expansion of medical education and research that Vayalil described as a “North Star” project — designed to attract top talent and global pharmaceutical partners to the UAE.
Burjeel is now waiting for better market conditions to proceed, but expects revised pricing and is eyeing potential government support to try again, Shamsheer Vayalil said. “Spreads have changed,” Vayalil said. “If we get some local good government support, we might reconsider.”
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The Gulf’s healthcare sector has attracted massive investment amid the region’s diversification drive, with hundreds of millions of dollars spent on the shift from a state-run system to a privatized, personalized model over the past decade.
But Burjeel’s delay is an example of stalled economic momentum in the Gulf after Iran began attacking the region following the US-Israeli aerial assault on the country beginning Feb. 28.
At Burjeel, priorities have shifted quickly in the past two months: “No more office,” Vayalil said, describing a move by the company’s C-suite into its hospitals to be closer to frontline workers.
It also stockpiled supplies, and put emergency rooms on standby for a surge in the early days of the conflict, Vayalil said, adding that a mental health hotline was opened up for staff experiencing panic attacks.
Burjeel, which counts Sheikh Tahnoon bin Zayed’s International Holding Company as a minority shareholder, also holds an exclusive contract with state oil company ADNOC, providing medical services across its 200 sites, both on land and offshore.
The group’s deal with ADNOC took on new importance as energy assets came under attack from Iranian projectiles, Vayalil said. An ADNOC refinery, gas processing plant, and storage facilities were among the sites targeted. Vayalil described the oil company’s health and safety standards as lifting Burjeel’s broader preparedness. “They make sure we’re 10 steps ahead,” he said.
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