Tabreed secures AED 1100 million in regional financing for 2009
National Central Cooling Company PJSC, ‘Tabreed’ the Abu-Dhabi based utility company announced today that it has secured a two-year AED 750 million loan facility from First Gulf Bank (FGB). Today’s announcement follows the signing of an AED 368 million ijara financing for Tabreed from Abu Dhabi Commercial Bank (ADCB) in March of this year.
The AED 750 million loan from FGB will be used to fund the Company’s 2009 capital expenditure. The March AED 368 million ijara financing from ADCB was used for the full-repayment of Tabreed’s five-year USD $100 million Sukuk, launched in 2005.
Commenting on both loan facilities, Sujit S. Parhar, Tabreed CEO said, “Since financing is the cornerstone of a utility company’s business plan, we are pleased to have the support from the region’s financial markets. Such support is important as Tabreed moves to the next stage of its growth.”
“We have a significant capital expenditure programme plan for 2009 with major projects such as the Dubai Metro, Yas Island, and our joint ventures with Aldar and Sorouh, underway, and these financing agreements are important to the delivery of these projects.”
Tabreed CFO Steve Ridlington added, “Given the current condition of the financial markets, it is significant that Tabreed has demonstrated its ability to secure regional financing, which is testament to our robust expansion plans and the increasing importance of district cooling for regional growth and infrastructure investment ambitions.”
“Whilst our business model requires significant upfront expenditure it also offers long-term, stable and sustainable returns. Tabreed has proven its ability to access the capital markets in even the most challenged conditions in a timely and sizeable manner.”
Over the past 12 months Tabreed has completed 10 district cooling plants, with 9 expected to come on-stream in the next three months adding an additional 229,000 tons of capacity. Tabreed operates 34 plants with total installed capacity of more than 400,000 tons.