Tabreed raises $500m with seven-year sukuk
The company also arranges new bank facilities of Dh1.5b
Abu Dhabi: National Central Cooling Company (Tabreed) said that it has raised a $500 million (Dh1.8 billion) sukuk with a seven-year tenor after recent investment meeting in Europe, Asia and the UAE.
The new sukuk will be listed on the London Stock Exchange, according to a statement from the company on Tuesday.
Tabreed also said it secured new bank facilities of Dh1.5 billion. The proceeds of the sukuk as well as the bank facilities will be used to refinance Dh2.8 billion of current corporate debt.
The refinancing of this debt will deliver a number of benefits, including improved balance sheet efficiency and a longer debt maturity, which will further improve Tabreed’s cashflow, providing fresh impetus for the company’s expansion into both existing and new markets.
“We are delighted with the market’s positive response to our sukuk, and with the recognition Tabreed continues to gain as a safe and high-quality investment,” said Jasem Hussain Thabet, Tabreed’s Chief Executive Officer.
“This successful issuance leaves us in a stronger position to leverage growth, with even greater capital and operational efficiency.”
Tabreed owns and operates 72 plants across the GCC, including 63 plants in the UAE, two in Saudi Arabia, three in Oman, one in Bahrain and others in the region.