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National Central Cooling Company (Tabreed) has plans to sell bonds, or sukuk, worth $1 billion to UAE investors, it has been confirmed.
In a meeting on Tuesday, the Dubai-listed firm’s board of directors passed a resolution to authorise the issuance of the financial instruments in one or more tranches, to be offered to qualified investors.
The bonds, however, will not be for public subscription and not to be listed on any financial market in the UAE, Tabreed said in a bourse filing on Wednesday
They will also be issued with a tenor of up to 30 years and at a profit rate not exceeding the prevailing market rate available to companies with the same credit rating as Tabreed.
The company had reported a 19 percent increase in net profit for the second quarter of the year to 142.1 million UAE dirhams.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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