UAE's Tabreed signs $412mn Islamic finance deal

UAE's Tabreed signs $412mn Islamic finance deal
Published: 2 July 2017 - 2:35 a.m.
By: Utilities ME Staff

National Central Cooling Company PJSC (Tabreed) has inked an Islamic finance facilities agreement worth $412m (AED1.5bn) that will refinance part of its senior bank debt.

The district cooling company's bank debt was provided in December 2014, and was amended and restated in May 2015.

The latest finance facility, which has a termination date of 30 June, 2027, will "also provide some additional funds for capital expenditure and investment purposes", Tabreed said in a filing on Dubai Financial Market (DFM).

Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank (ADIB), and Mashreq Al Islami – the Islamic banking division of Mashreqbank – are the finance facility's listed arrangers.

ADIB is also listed as the transaction's investment agent and security agent.

Earlier this month, France-based electric utility company, Engie, announced it has acquired a 40% stake in Tabreed from Mubadala Investment Company.

With this acquisition, Engie will become Tabreed’s key shareholder, along with Mubadala, which will retain a 42% stake in Tabreed following the transaction, subject to regulatory approval.

This February, Tabreed revealed it added 74,034 refrigerated tonnes (RT) to its cooling capacity in 2016, increasing its annual net profit by 6% to $100m (AED367.4m).

This increase was partly effected through the acquisition of a plant from Abu Dhabi's International Capital Trading (ICT), which added 11,538 RT to the company's capacity.

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