Two banks in Dubai agreed to give a $70 million loan to Tabreed Air Condition Company which plans three major projects throughout Dubai.
The Islamic Bank of Dubai and the National Union Bank will each provide 50 percent of the 10-year loan.
A final agreement between the banks and Tabreed will be signed in November, a source at the Islamic Bank said.
The source, which spoke on condition of anonymity, said the loan would be used to finance air condition plants in three emirates, Sharka, Al-Ein and Ras el-Khaimah.
The Ras el-Khaima plant would provide 1800 tons of power daily and supply air conditioning to the Al-Manar Mall in Ras al-Khaimah. The Sheikh Zayied Street plant would supply 25,000 tons of power daily for air condition systems in high rises along both sides of the street. The 20,000 tons of power supply from Al-Ein plant would be reserved for new buildings in the area.
Tabreed, which was established in 1998, made high profits last year. The company made a D8.7 million ($2.3 million) profit and company stock gains was D17 ($4.6) per share.