Hospital targets growing sukuk market

07 November 2003
Private healthcare provider Bahrain Specialist Hospital (BSH)has launched a $22 million sukuk issue lead managed by the local Liquidity Management Centre (LMC). The funds will finance expansion plans and the paper will be backed by the hospital's existing assets.

'We have already secured at least 50 per cent of the target subscription,' says a senior LMC official. The sukuk will be listed on the Bahrain Stock Exchange [BSE] but is open to all Gulf investors. The five-year paper carries an 8 per cent coupon.

BSH is the latest in a string of corporates turning to the increasingly popular Islamic leasing instrument to raise funds. Dubai-based real estate developer Emaar Propertiesis planning to issue a five-year, $50 million sukuk, also lead managed by LMC (MEED 31:10:03). Abu Dhabi-based National Central Cooling Company (Tabreed)plans a $100 million issue in early 2004, lead managed by the UAE's National Investor(MEED 31:10:03). Another local corporate is understood to be preparing to launch a sukuk before the end of November.

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