Tabreed has secured a two-year US $204.2 million (AED750 million) loan facility from First Gulf Bank (FGB) to fund its ambitious 2009 capex.
“We have a significant capex programme plan for 2009, with major projects such as the Dubai Metro, Yas Island, and our joint ventures with Aldar and Sorouh under way, and these financing agreements are important to the delivery of these projects,” said Tabreed CEO Sujit S. Parhar.
The company has completed ten district cooling plants over the past year, with nine expected to come on-stream in the next three months, adding an additional 229,000 tonnes of capacity. Tabreed operates 34 plants in total, with an overall installed capacity in excess of 400,000 tonnes.
The FGB loan follows the signing of a $1.2 million ijara financing in March 2009, used for the full repayment of Tabreed’s five-year US$100 million Sukuk, launched in 2005.
Commenting on both loan facilities, Parhar said: “Since financing is the cornerstone of a utility company’s business plan, we are pleased to have the support from the region’s financial markets. Such support is important as Tabreed moves to the next stage of its growth.
Tabreed CFO Steve Ridlington added: “Given the current condition of the financial markets, it is significant that Tabreed has demonstrated its ability to secure regional financing, which is testament to our robust expansion plans and the increasing importance of district cooling for regional growth and infrastructure investment ambitions.
“While our business model requires significant upfront expenditure, it also offers long-term, stable and sustainable returns. Tabreed has proven its ability to access the capital markets in even the most challenged conditions in a timely and sizeable manner,” concluded Ridlington.