Tabreed has announced the successful syndication of a landmark term-loan facility, pre-funded by HSBC in March 2020 as part of the company’s acquisition funding of an 80% stake in Emaar Properties PJSC’s Downtown Dubai district cooling business.
The $692 million loan has a tenor of five years (until March 2025) and was structured as a multi-tranche syndicated facility with Islamic and conventional tranches.
Against a backdrop of unprecedented market conditions and related loan market volatility and price dislocation, the syndication was successfully closed and over-subscribed by a diverse group of nine international, regional and local banks.
In addition to financing the acquisition of Tabreed’s stake in the Downtown Dubai district cooling business, the facility will also support the development of a new state-of-the-art district cooling plant in Downtown Dubai.
The Downtown Dubai district cooling scheme currently provides 148,471RT of contracted capacity through a network that distributes chilled water produced in three already existing interconnected district cooling plants.
Bader Al Lamki, Chief Executive Officer at Tabreed, said: “The successful syndication of this loan facility underscores Tabreed’s strong business fundamentals, the solid relationships with our key partnering banks and the confidence the financial markets have in our expansion projects, both in Dubai and across the region.’’
HSBC and ADIB acted as Joint Underwriters, Bookrunners, Initial Mandated Lead Arrangers as well as Global Facility Agent and Investment Agent, respectively.
“This syndication demonstrates the strong partnerships we have with all our existing relationship banks who have been key stakeholders of the company over the past several years," added Adel Salem Al Wahedi, Chief Financial Officer at Tabreed.
"In line with other utility infrastructure companies, we recognize the role of strong financial institutions as a key pillar to success, and we look forward to future collaboration opportunities.”