UAE's Tabreed says fails to make sukuk payment

By Jason Benham
  • Thursday, 27 May 2010 1:22 PM
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COOL FIRM: The firm provides cooling for projects such as the Dubai Metro and Abu Dhabi's Yas Island. (Getty Images)

COOL FIRM: The firm provides cooling for projects such as the Dubai Metro and Abu Dhabi's Yas Island. (Getty Images)

Dubai-listed refrigeration and cooling company Tabreed on Thursday said it did not make distribution payments on its AED1.7bn ($462.8m) Islamic bond due in 2011. The payment was due on May 19, it said in a statement on Dubai's bourse website.

Tabreed, also known as the National Cooling Co, deferred payment on the bond in April, sparking concerns the state may step in again and bail it out.

The firm, which provides cooling for projects such as the Dubai Metro and Abu Dhabi's Yas Island, said in April it was deferring payment as its board considered further amendments to the bond's terms in connection with its recapitalisation program. (Reuters)

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