Tabreed made quite some headway in Dubai last year, in particular through the deal for Downtown Dubai's district cooling assets. Image Credit: Gulf News Archive

Dubai: The UAE’s district cooling company Tabreed has received shareholder approval to head to market for up to $1 billion in debt offerings. The company had earlier spoken about going big in new markets as well as pick up more projects in its home base.

This can be done – within the next 12 months – either through non-convertible bonds or Sharia-compliant sukuk issues. The debt needs can be tapped in “one or more tranches”.

The rate on these debt offerings must not exceed “prevailing market rate available to companies with same credit rating” as Tabreed.

Cash and bonus
Tabreed will issue cash dividends of 5.75 fils per share, together with bonus shares equal to 1 share for every 45 held by each shareholder for the financial year ended December 31, 2020.

In 2020, the company did make quite the splash with a couple of high-profile transactions – first was to pick up a majority stake in the district cooling services provided in Downtown Dubai, the upmarket high-rise cluster. It paid Dh2.48 billion for the 80 per cent stake there, with Emaar holding the rest.

The second was to buy the district cooling provider for Saadiyat Island from Aldar Properties, in a deal valued at Dh963 million.