Friday 29 March 2024
 
»
 
»
Story

Tabreed raises $500m with new 7-year sukuk

ABU DHABI, October 30, 2018

National Central Cooling Company (Tabreed) has raised $500 million with a fixed-rate senior unsecured US dollar-denominated sukuk with a seven-year tenor. 
 
The issue follows a series of fixed-income investor meetings which took place in Europe and Asia, as well as in the UAE, said a Wam news agency report.
 
The new sukuk, which will be listed on the London Stock Exchange, had strong institutional demand both locally and in Asia and Europe, which enabled the issue to be oversubscribed by 50 per cent. The sukuk was competitively priced, with a profit rate of 5.5 per cent, underpinned by Moody’s Baa3 and Fitch’s BBB credit ratings, which were announced last week. These ratings are the first to be assigned to Tabreed by Moody’s and Fitch, and have also been assigned to the sukuk itself.
 
The ratings agencies noted Tabreed’s robust and sustainable business model, the long-term nature of its customer contracts and the consequent strength and resilience of its cashflows in attributing their ratings. The company’s strong competitive position in the growing GCC market was also referenced, as well as its low-risk profile and supportive shareholder base.
 
In addition to the new sukuk, Tabreed has arranged new bank facilities up to Dh1.5 billion. Together with the proceeds from the new sukuk, these will be used to refinance Dh2.8 billion of current corporate debt. The refinancing of this debt will deliver a number of benefits, including improved balance sheet efficiency and a longer debt maturity. These, in turn, will further improve Tabreed’s cashflow, providing fresh impetus for the company’s expansion into both existing and new markets.



Tags: Tabreed | sukuk |

More Construction & Real Estate Stories

calendarCalendar of Events

Ads