Dubai Islamic Bank (DIB) has completed its Islamic financing arrangements for two Tabreed cooling plants. The plants have been financed by a long-term syndication agreement between DIB and Tabreed, at a cost of 195 million Emirati dirhams ($53 million).
The joint financing deal has seen the complete construction of two cooling plants in a four-plant development deal that was signed between the two parties in 2001. The entire amount is repayable by Tabreed over a 12-year period. DIB provided 60 percent of the finance structure for the agreement while Tabreed made up the remaining 40 percent.
“This agreement is a unique funding mechanism which utilized syndicated Islamic finance (Ijara) to provide a financing structure tailored to the needs of Tabreed,” said Chief Executive Officer of DIB, Butti Khalifa Bin Darwish.
The completion of these two additional cooling plants now takes the total number of cooling stations built by Tabreed to 14. Located throughout the United Arab Emirates (UAE), the stations provide cooling solutions, such as air conditioning facilities for both commercial and residential purposes. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
