Tabreed wins award for securing $408m loan deal

UAE-based district cooling utility company National Central Cooling Company (Tabreed) won the local currency loan deal of the year at the Bond, Loans and Sukuk Awards Middle East on held on 7 December 2017, at the Ritz Carlton JBR, Dubai

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The Tabreed team at Bond, Loans and Sukuk Awards Middle East on held on 7 December2017, at the Ritz Carlton JBR, Dubai.
The Tabreed team at Bond, Loans and Sukuk Awards Middle East on held on 7 December2017, at the Ritz Carlton JBR, Dubai.

UAE-based district cooling utility company National Central Cooling Company (Tabreed) won the local currency loan deal of the year at the Bond, Loans and Sukuk Awards Middle East on held on 7 December 2017, at the Ritz Carlton JBR, Dubai.

Tabreed secured a club loan through a $408m (AED1.5bn) 10 year Shari’a-compliant facility, enabling the company to diversify its funding base, extend its debt maturity profile and lower its financing costs.

Commenting on the award win, Jasim Thabet, Tabreed’s CEO said: “This award confirms that our Shari’a complaint loan is a best in class facility that not only ensures Tabreed stock is available to Islamic investors, but also adds value to existing shareholders. The Local Currency Loan Deal of the Year Award recognizes the hard work and dedication of the Tabreed team, participating banks, lawyers and advisors.”

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Thabet added: “We are honored to be recognized in the category for our achievements by a jury of the most influential international investors from leading banking and finance institutions.”

According to Tabreed, the new Shari’a-compliant facility, while allowing to secure better terms on previous loan, also served the dual purpose of opening the company up to Shari’a-compliant equity investors.

The innovative Islamic structure, based on the sale and purchase of refrigeration capacity, with Tabreed selling that capacity to generate revenue to service the financing and pay the principal amount, is a first for the sector, the company said. 

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