UAE’s Tabreed to issue $1bn bonds

The National Central Cooling Company (Tabreed) has received approval from shareholders to raise $1bn through the issuance of bonds or sukuk.

In a statement issued to the Dubai Financial Market earlier this week, it said that the bonds or sukuk will be issued in one or more tranches over the next 12 months.

It will be valued with a tenor of up to 30 years at a profit rate not exceeding the prevailing market rate available to the companies with the same credit rating.

It said that amount raised will used to fund acquisitions or for general corporate purposes.

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

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

Following that transaction, Tabreed’s presence in Dubai increased to 278,801 RT while its total capacity has grown by 12.6 per cent to 1,338,602 RT from 83 plants.

Last year, Bader Saeed Al Lamki was appointed as the CEO of Tabreed, replacing Jasim Husain Thabet who joined as the first Emirati CEO of Tabreed in August 2012.

Read: UAE’s Tabreed appoints former Masdar exec as CEO