The National Central Cooling Company (Tabreed) successfully issued a $ 500 million seven-year bond with a yield of 2.5%.
According to the Emirates News Agency, the bonds offered witnessed strong demand from around 140 international and regional investors, which resulted in a 5 times the size of the initial subscription of $ 400 million. It indicates investor confidence in the firm's solid credit assets, despite the current conditions in the global economy. Thanks to the high demand, the company was able to set the prices significantly to reach the final yield of 2.5%, while increasing the size of the final bonds to $ 500 million. The bonds received a credit rating of / Baa3 / from Moody's and a rating of / BBB / from Fitch, in line with Tabreed's ratings.
The seven-year bonds also witnessed strong demand from international investors, who represented 90% of the specified geographic regions, with investors from Europe reaching 49% and 21% of Asia The proportion of US foreign funds reached 20%. The bonds will be listed on the London Stock Exchange, alongside the existing 2025 Sukuk issued by Tabreed.
Khaled Abdullah Al Qubaisi, Chairman of Tabreed Company, said that the success of the issuance in light of global fluctuations caused by the current market conditions indicates the continued confidence of the market in our ability to provide Sustained cash flows and returns. The high turnout indicates the durability of our credit assets and the strength of our credit ratings, which enabled us to attract the interest of a variety of investors and receive many requests that exceed what is offered. This undoubtedly makes us proud. It is also a clear indication of investor confidence in the future of cooling and the company's potential for growth
For his part, Badr Saeed Al-Lamky, CEO of Tabreed, said: These new bonds, which witnessed strong market demand, increased the strength of our general budget and strengthened our financial position Strong to position us in a prestigious position allow us to take advantage of the increased growth opportunities. This successful issuance is a testament to the company's financial viability, the success of its business model, as well as our position in the sector. JP Morgan and HSBC were authorized to act as joint global coordinators and lead managers for this issue, and were also shared by Commercial Bank of Dubai, who acted as lead manager.
