Dubai-based Emirates Central Cooling Systems Corporation (EMPOWER) has prepaid three loan installments of $157.5m (AED580m) prior to their maturity.
With these prepayments and payment of DIB facility of $128m, Empower has fully settled its term loan facilities for a total amount of $728m (AED2.67bn) and the company will have zero debt in its books at the end of the year.
Ahmad Bin Shafar, chief executive officer of Empower said: “We have pre-paid the loan facility installments 2 years prior to its final maturity. This reflects the robustness and sustainability of our business model and our prudent financial strategy that is paying off significantly.
“Empower has prepaid its loan installments in the past as well under bilateral and syndicated loan facilities. However, this prepayment has a specific significance as Empower has fully settled all its financial indebtedness and will not have any debt balance in its books as of 31st December, 2018.”
Bin Shafar added: “Empower had secured this financing for the acquisition of Palm District Cooling (PDC) and for other capex purposes. Empower had been paying the annual loan installments of this amortizing loan structure and has now completely settled all the remaining loan installments including the ones due in 2019.”
Bin Shafar stated: “Empower boasts an open dialogue with banks via which it ensures competitive financing for its expansion. The company strongly believes that cost effective and ever growing requirement for funding for the district cooling industry is dependent on this continuous dialogue between district cooling companies and local, regional and international banks.”
Bin Shafar also added that the growing confidence of banks in financing Empower’s district cooling projects also stems from Dubai’s support to the growth of this industry as the Emirate looks at district cooling as a key element of its energy strategy and aims to considerably increase the penetration of district cooling services.
“We will continuously invest in the further development of our infrastructure and network to cater to the rapidly increasing demand for district cooling in Dubai. We are delighted to settle these loan installments ahead of the agreed timelines,” concluded Bin Shafar.