District cooling provider, Empower, has announced that it recently settled the half-yearly loan instalment of $48m (AED175m), ahead of schedule.
This loan forms part of the syndicated loan facility from a consortium of international and local banks and financial institutions, with Emirates NBD being the facility agent, WAM reported.
Ahmad bin Shafar, CEO of Empower, said: "Empower has adopted the strategy of investing in plants and network infrastructure driven by actual demand and has been extremely cautious in its investments. This has ensured sustainable growth of the company and has resulted in the consistent financial performance of the company. As a result, Empower has always settled its obligations as per the timelines or ahead, which has been well-acknowledged by banks who, in turn, value their investments in our business.
He added: "District Cooling being a utility business with long-term and stable cash flows significantly reduces financing risks for banks and financial institutions and we have witnessed increased confidence of banks and financial institutions in financing the UAE’s district cooling industry, notably Empower."
Out of the total loan portfolio of approximately AED2.6bn, Empower has already settled AED2bn, Bin Shafar stated.