Wednesday, Jul 20, 2011
(Adds background in paragraph 5; updates share price in last paragraph.)
DUBAI (Zawya Dow Jones)--National Central Cooling Co. (TABREED.DFM), better known as Tabreed, said Wednesday it has repaid in full a 735 million U.A.E. dirham ($200 million) Islamic bond, or sukuk, that was due to mature on July 20, a move that will reduce the company's debt pile and financing costs.
The Abu Dhabi-based district cooling firm came under pressure in the aftermath of the global financial crisis, as credit dried up and business volumes turned sour, plunging the company into the red. Earlier this year, Abu Dhabi government-owned Mubadala Development Co. injected fresh funds in the company to help it meet its financing needs as part of company-wide financial revamp.
"The repayment of the 06 Sukuk today was contemplated in our structuring of the recapitalisation program and improves the company's overall financial position," said Tabreed's chairman Waleed Al Mokarrab Al Muhairi in a statement.
Tabreed issued the sukuk in July 2006.
The utility in May announced that its first-quarter net profit fell 21% to AED31.9 million from AED40.4 million in the year-earlier period.
Tabreed's shares were last trading 1.3% higher at AED1.01 on the Dubai market.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
20-07-11 0631GMT
