Tabreed names banks for Islamic bond sale

Dubai-listed National Central Cooling Company (Tabreed) said on Sunday it had mandated banks to sell convertible Islamic bonds due by 2011.

Tabreed, which builds cooling and air conditioning systems, said in February it planned to sell between $300 million to $500 million of convertible Islamic bonds to help refinance existing debt and expansion.

The firm has appointed Morgan Stanley, Standard Chartered and National Bank of Abu Dhabi (NBAD) as lead managers for the sale, it said in a statement.

"Tabreed expects to offer the certificates to investors in the Middle East and other jurisdictions outside the US, including Europe and Asia," it said without saying how much it planned to sell.

Islamic bonds, also known as sukuk, comply with Islam's ban on the receipt of interest, and are typically based on physical assets which pay a dividend or rent to bondholders. (Reuters)

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