PHOTO
The UAE district cooling company Tabreed has raised 1.8 billion UAE dirhams ($490 million) in new bank debt to support its growth and optimise its capital structure by diversifying funding sources.
The AED 1.8 billion loan has a six-year tenor and is structured as a dual-tranche facility (AED/USD) in compliance with Sharia principles, with an equivalent of AED 1 billion designated as the green tranche.
The facility is financed by Emirates NBD and Mashreq, with the financing constituting nearly 63% of Tabreed’s total capital.
Adel Al Wahedi, Tabreed’s CFO, said the raising of debt will support the Dubai Financial Market-listed company’s M&A strategy, and strengthen the company’s balance sheet by optimising its debt maturity schedule.
(Writing by Bindu Rai, editing by Brinda Darasha)
