Shareholders of Tabreed have approved a bond or sukuk issuance worth up to $1 billion after a vote during its general assembly meeting.

The company, also known as The National Central Cooling Company, voted unanimously following a special resolution to offer bonds and/or sukuk in one or more tranches to fund acquisitions as well as for general corporate purposes.

The bonds or sukuk will have a value of up to $1 billion, issued, for up to 30 years at prevailing market rate, and will be available to qualified investors. 

The public joint stock company said the proceeds will be used to fund acquisitions and/or general corporate purposes.

Tabreed acquired an 80 percent stake in Emaar’s Downtown Dubai district cooling business in April, for AED 2.48 billion ($675 million).

The company, in which Abu Dhabi's Mubadala Investment Company and France's Engie hold stakes, posted a profit of AED 146 million ($40 million) in the first half of 2020, down from AED 220 million ($60 million) in 2019.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

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