UAE’s Tabreed issues new $500m 7-year bond

UAE-based National Central Cooling Company, Tabreed, has raised $500m (Dhs1.8bn) with a new 7-year, 2.5 per cent coupon bond issuance.

The bond has been rated Baa3 by Moody’s and BBB by Fitch.

Orders came from around 140 local and international investors, with the issuance oversubscribed almost five times at its initial size of $400m.

Reportedly, 90 per cent of the investors were from international locations, with 49 per cent from Europe, 21 per cent from Asia and 20 per cent from offshore US funds.

The bond will be listed on the London Stock Exchange, alongside Tabreed’s existing 2025 sukuk.

Tabreed has 83 District Cooling plants, delivering over 1.342 million refrigeration tons to key projects across the UAE including Burj Khalifa, The Dubai Mall, Sheikh Zayed Grand Mosque, Dubai Metro, and in other parts of the region too including the Bahrain Financial Harbour and the Jabal Omar Development in Makkah.

“The success of the issuance is proof of the continued confidence in Tabreed and its ability to generate sustainable cash flows and returns,” said Khaled Abdulla Al Qubaisi, chairman of Tabreed.

Read: UAE’s Tabreed acquires 80% stake in Emaar’s district cooling business

In April, Tabreed acquired an 80 per cent stake in property developer Emaar’s Downtown Dubai district cooling business for Dhs2.48bn ($675m),

In October, it received approvals from shareholders to raise $1bn through the issuance of bonds or sukuk which it said will be issued in one or more tranches over the next 12 months.

Read: UAE’s Tabreed to issue $1bn bonds