UAE's Tabreed plans to issue $1bln sukuk

Company yet to authorise offering in upcoming general assembly

  
National Central Cooling Company PJSC (Tabreed) Plant in Abu Dhabi

National Central Cooling Company PJSC (Tabreed) Plant in Abu Dhabi

Tabreed/Handout via Thomson Reuters Zawya

Dubai-listed National Central Cooling Company (Tabreed) is planning to raise funds through the issuance of dollar-denominated sukuk, or bonds.

The Dubai-listed firm joins a growing list of corporates and sovereigns in the Gulf Cooperation Council (GCC) who are turning to the international debt markets in a bid to bolster finances amid the coronavirus pandemic.

The company said on Monday that it will hold a general assembly meeting next month to consider a resolution authorising the board of directors to issue bonds and/ or sukuk with a total value of up to $1 billion.

The offering can either be made in one or multiple tranches, 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.

“But [it will not be] for public subscription in the United Arab Emirates and not to be listed on any financial market [in the country],” Tabreed said in a bourse filing with the Dubai Financial Market (DFM)

The company had earlier said that, despite the restrictions, it has been able to maintain continuous uninterrupted service to all of its customers during the coronavirus outbreak.

In July, it reported a net profit of 224.3 million UAE dirhams for the first six months of 2020. Group revenue went up by six percent to 710.01 million dirhams, compared to 671.94 million dirhams in the same period last year.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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