UAE’s Tabreed Confirms Dhs2.6bn Loan Agreement

United Arab Emirates utility Tabreed said on Monday it had completed the refinancing of debt facilities worth Dhs2.6 billion ($707.9 million), confirming a Reuters story published the previous day.

The new long-term facility was arranged by Abu Dhabi Commercial Bank, First Gulf Bank and Mashreq , the firm said in a statement to the Dubai bourse, without revealing the interest rate on the debt.

National Central Cooling Co., known as Tabreed, said in Monday’s statement the refinancing comprised of a 692 million dirham loan which matures at the end of 2018, as well as a Dhs1.45 billion loan and a Dhs450 million revolving credit facility both maturing in March 2021.

The refinancing consolidated its existing debts into a smaller grouping of banks, with the favourable tenor and pricing achieved aided by its stable recurring revenue streams, Jasim Husain Thabet, Tabreed’s chief executive, was quoted as saying in the statement.

On Sunday, Reuters published details of the seven-year loan deal from the three banks, saying the Dubai-listed firm will pay a margin of 1.4 per cent on the amortising part of the loan and 1.9 per cent on the remaining chunk.