Emicool wins financing deal
Dubai, May 26, 2008
Emirates District Cooling Company (Emicool) has signed a syndicated Islamic finance facility of Dh669 million with seven leading banks.
The facility will fund the first phase of its Dh2.5 billion expansion plan.
Emicool is a joint venture between Union Properties and M’Sharie, the private equity arm of Dubai Investments.
The finance facility is arranged jointly by Badr Al Islami, Standard Chartered Bank and Emirates Islamic Bank as initial joint mandated lead arrangers. The Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Bank International and Union National Bank acted as joint mandated lead arrangers in the syndicate.
“This syndication opens up new strategic avenues for Emicool, and will help to set the company on a sustainable high growth trajectory,” said Abdul Aziz Yaqoob Al Serkal, managing director of M’Sharie and chairman of Emicool. “We view the enthusiastic response from the banking community as further proof of Emicool’s market reputation and excellent growth potential.”
The facility is repayable in one bullet payment within three years, from the proceeds of a future Islamic finance facility or a Sukuk issue (the mandate for which has already been awarded to Badr Al Islami, Mashreqbank).
The financing proceeds will mainly be used to fund Emicool’s projects at Dubai Motor City and Dubai Investments Park. Emicool estimates that its ambitious expansion plans will require an investment of Dh2.5 billion over the next five years. In this regard, Emicool expects to raise twice the amount of the current syndication in the future to refinance the existing facility and meet future requirements, said Al Serkal.
Emicool provides highly reliable, efficient and environment friendly district cooling services that are much more cost-effective when compared to conventional cooling systems and processes, he said. – TradeArabia News Service