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Sat 10 Nov 2018 10:29 AM

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UAE's Tabreed raises $500m with new sukuk

Cooling firm says new sukuk will be listed on the London Stock Exchange after attracting strong institutional demand

UAE's Tabreed raises $500m with new sukuk
With 72 district cooling plants located throughout the region, Tabreed currently delivers over 1 million refrigeration tons to key developments in the region.

National Central Cooling Company, better known as Tabreed, has raised $500 million with a fixed rate senior unsecured US dollar denominated RegS sukuk with a seven-year tenor.

The issue follows a series of fixed income investor meetings which took place in Europe and Asia, as well as in the UAE, a statement said.

The new sukuk, which will be listed on the London Stock Exchange, had strong institutional demand both locally and in Asia and Europe, which enabled the issue to be oversubscribed by 50 percent, the company said.

In addition to the new sukuk, Tabreed said it has arranged new bank facilities up to AED1.5 billion. Together with the proceeds from the new sukuk, these will be used to refinance AED2.8 billion of current corporate debt.

The company said the refinancing of this debt will deliver a number of benefits, including improved balance sheet efficiency and a longer debt maturity, providing fresh impetus for expansion into both existing and new markets.

Khaled Abdulla Al Qubaisi, Tabreed’s chairman, said: "This new sukuk, which was well received by the market, further strengthens our balance sheet and reinforces our robust financial position and leaves us well placed for further growth."

Jasim Husain Thabet, Tabreed’s CEO, added: "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. This successful issuance leaves us in a stronger position to leverage growth, with even greater capital and operational efficiency."

With 72 district cooling plants located throughout the region, Tabreed currently delivers over 1 million refrigeration tons to key developments in the region including Abu Dhabi’s Al Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in Makkah.

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