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Tabreed plans to raise USD 1 bn to expand operations: UAE’s district cooling company Tabreed received shareholder approval for a USD 1 bn bond and/or sukuk issuance aimed at funding acquisitions and general corporate purposes sometime over the next year, according to a DFM disclosure (pdf). The company is planning to increase its market share in the UAE and five other countries it is currently operating in including India, Saudi Arabia, Oman, Bahrain and Egypt, the company said in a separate DFM disclosure (pdf).
What we know: The company’s board of directors is yet to decide whether to issue the bonds or sukuk in one or more tranches, the statement said. The bonds — which will either be issued by Tabreed directly or through one of its special purpose vehicles — will be offered at a margin not exceeding the prevailing market rate for companies with similar credit ratings, the statement noted.
Tabreed’s first international partnership was with India: The cooling company signed an agreement with the regional government of India’s Telangana state to explore investments in the district cooling sector of Hyderabad last September. Tabreed — which partnered with the IFC on a USD 400 mn, five-year expansion into India back in 2021 — is looking to set up infrastructure to reduce 200 MW of electricity demand in the Indian city.
The company has also been busy back home…: Tabreed has 75 plants operating in the Emirates. Amongst the projects is a partnership with the Abu Dhabi National Oil Company (Adnoc) to establish the region’s first geothermal cooling plant in Abu Dhabi’s Masdar City and a district cooling pilot project using nanofluid tech which was completed last November.
… And secured some funding recently: Tabreed successfully closed its inaugural Green Revolving Credit Facility for AED 600 mn back in December. The five-year financing agreement aims to introduce highly efficient cooling solutions in the GCC market, focusing on sustainable and innovative technologies.
