The National Central Cooling Company (Tabreed) announced the successful closing of a joint loan as part of a fixed-term credit facility agreement funded by HSBC Bank Middle East Limited in March 2020.
According to the Emirates News Agency, this comes within the framework of financing the acquisition of 80% of Emaar Properties listed on the Dubai Financial Market under the symbol: DFM: Emaar Cooling District Downtown Dubai.
The loan is valued at $ 692 million, extends for a period of 5 years until March 2025, and has been structured on the basis of multi-tiered facilities and consists of two Islamic and traditional parts.
In spite of the current circumstances in the world, the joint loan has been successfully closed and the required amount exceeded and a variety of nine international, regional and local banks have subscribed.
In addition to financing Tabreed's acquisition of the refrigeration activity in Downtown Dubai, the loan will also support the development of a new and advanced district cooling plant in Downtown Dubai.
The current district cooling system for the Downtown Dubai area provides 148,471 cooling tons through the chilled water distribution network, produced by three interconnected cooling plants.
said Badr Al-Lamky, CEO of Tabreed: Our success in raising the joint loan confirms the company's well-established position, its partnerships with major banks, and the confidence of the financial markets in our expansion projects, both in Dubai. Or at the regional level.
For his part, Adel Salem Al-Wahidi, Chief Financial Officer at Tabreed said: “The credit for this joint loan is largely due to our strong partnerships with banks, which were One of the actors of the company and played a pivotal role in its work during the past several years .. and as one of the leading infrastructure companies, we recognize the importance of the role of financial institutions as one of the main pillars of success and look forward to future cooperation opportunities.
HSBC and Abu Dhabi Islamic Bank worked together respectively as agent, principal, lead regulator and agent of global credit facilities for the loan, which saw nine participation. Banks where more than 40% of the deal's value was subscribed by regional and international banks with strong support from the UAE banking market.
while Emirates NBD Capital Limited and Samba Group assumed the role of the primary organizer of the facility .. The syndicated loan is a significant step in support of a major acquisition by a government-related entity. The year 2020 marks Tabreed's successful return to the joint financing market ....
