Tabreed signs AED One Billion Ijara syndication

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TabreedTabreed, the region's award-winning district cooling pioneer, has formally sealed a landmark deal with HSBC AmanahHSBC Amanah, which lead managed and arranged a 12 year Ijara (Islamic lease) facility for AED One Billion. The financing will be used to refinance existing facilities as well as support the on-going expansion of cooling projects..

HSBC AmanahHSBC Amanah, acted as the Initial Mandated Lead Arranger and following general syndication was joined at the Mandated Lead Arranger level by Abu Dhabi Commercial BankAbu Dhabi Commercial Bank, Dubai Islamic BankDubai Islamic Bank, National Bank of Abu DhabiNational Bank of Abu Dhabi PJSC, and Standard Chartered BankStandard Chartered Bank. First Gulf BankFirst Gulf Bank participated at the Lead Arranger Level, while Abu Dhabi Investment CompanyAbu Dhabi Investment Company, Badr Al-IslamiBadr Al-Islami (the Islamic banking division of Mashreqbank) and BBKBBK all acted Arrangers, with United Arab BankUnited Arab Bank as a Participant.

"District cooling is a capital intensive business and requires huge fund inflows. As one of the leading financial institutions with a global footing and a strong Islamic finance base. HSBC along with other esteemed patrtners on this Ijara syndication are the top international financial groups in the world with a proven track record. We believe our dedicated efforts combined with undeterred support from our key financers shall further facilitate our expansion plans," said Abdulla Matar Al Muhairi, Chief Financial Officer, TabreedTabreed.

"This mammoth Ijara syndication is significant as it also reflects the enormous confidence of the banks on us."

HSBC AmanahHSBC Amanah

HSBC AmanahHSBC Amanah

"This Ijara syndication represents a significant accomplishment as it was arranged in a challenging and increasingly volatile market environment. It confirms the confidence that financial institutions have in the TabreedTabreed credit story and its management team. We are privileged to have lead arranged this Islamic syndication for TabreedTabreed. This confirms our status as a leading provider of Islamic financial solutions to the company, following on from TabreedTabreed debut rated US$200m Sukuk issue in 2006 which HSBC AmanahHSBC Amanah joint lead arranged and book ran", commented Mohammed Dawood, Director, Global Capital Markets, HSBC AmanahHSBC Amanah.

TabreedTabreed

TabreedTabreed

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TabreedTabreed is one of the leading suppliers of district cooling services in the United Arab Emirates. TabreedTabreed designs, engineers, finances, constructs and operates district cooling facilities that supply chilled water for air conditioning. In addition, TabreedTabreed has expanded its district cooling operations by establishing subsidiaries and associate companies in Qatar, Bahrain, Jordan, Oman, Saudi Arabia and Kuwait. TabreedTabreed has also developed a number of subsidiary companies which service the district cooling and air conditioning industry.

TabreedTabreed currently operates 31 district cooling plants (of which it wholly owns 22) in the UAE from which it sells chilled water air conditioning services to customers that are connected to the relevant distribution network. TabreedTabreed and its subsidiaries own 227 Kton of capacity in the GCC region, of which 220 Kton is in the UAE and 7 Kton is in Bahrain. It operates further 97 Kton through associates, of which 67 Kton is in the UAE and 30 Kton is in Qatar.

In addition, based on existing arrangements, TabreedTabreed has in the GCC region a 722 Kton pipeline of projects under construction/development and a 473 Kton pipeline of potential new projects, expected to be installed by the end of 2010. The UAE Armed Forces has been TabreedTabreed's major customer to date, accounting for, in the fiscal year ended 31 December 2007, approximately 47 per cent. of installed capacity owned (directly and through subsidiaries) (53 per cent of installed capacity operated) and 67 per cent. of its district cooling revenues.

TabreedTabreed's current authorised and issued share capital is AED 1.213 billion. TabreedTabreed is listed on the Dubai Financial Market ("DFM") and has a wide shareholder base. Its shareholders include government bodies and investment institutions, private offices of high net worth individuals, overseas investors and the public.

About HSBC AmanahHSBC Amanah
HSBC AmanahHSBC Amanah is the global Islamic financial services division of the HSBC Group. It was established in 1998 with the aim of making HSBC the leading provider of Islamic financial services worldwide. With more than 150 professionals serving the Middle East, Asia-Pacific, Europe and the Americas, HSBC AmanahHSBC Amanah represents the largest Islamic financial services team of any international bank.

With the global resources of the HSBC Group at its disposal and the largest Islamic finance team of any international bank, HSBC AmanahHSBC Amanah is uniquely positioned to understand, structure, and distribute financial services that are compatible with the requirements of Shariah (Islamic Law).

For further information:
Rita Chahoud, PR and Communications Manager,
TabreedTabreed.
Tel: +971 4 3404422;
Fax: +971 4 340;
Email: rchahoud@tabreed.com.

© Press Release 2008