Dubai’s Empower Secures $127.8m Islamic Loan

Dubai-based district cooling firm Empower has secured financing worth $127.8 million from Dubai Islamic Bank (DIB), marking the first Islamic loan availed by the company.

The loan will be used to fund Empower’s multi-plant district cooling network in Dubai’s Business Bay area, the company said in a statement.

The Business Bay district-cooling network will eventually consist of 350,000 refrigeration tonnes (RT) worth of capacity for business, retail and residential buildings across the rapidly expanding neighbourhood.

The facility has been granted for a tenor of five years and is payable over half yearly instalments, the statement said.

The loan is based on a Mudaraba financing structure, which is a partnership between the bank and the company for a pre-agreed period and has been provided on a standalone basis.

“The DIB agreement will provide us with cost-effective funding to sustain our growth and drive the implementation of our landmark Business Bay project,” said Ahmad Bin Shafar, CEO, Empower.

“We pursue a financing strategy through a mix of debt and equity to maximise shareholder returns. Over the last decade, we have found that our prudent strategies have enabled us to deliver solid operating and financial results and meet our commitments as per agreed timelines.”

Empower provides district cooling services to a number of projects in Dubai including Business Bay, Jumeirah Beach Residence, Dubai International Financial Centre, Dubai Healthcare City, Jumeirah Lake Towers, Palm Jumeirah, Discovery Gardens and Dubai Design District among others.

Earlier this year, the company acquired Palm Utilities, which also includes Palm District Cooling, from a unit of Dubai World for $500 million.